As a country moves up along its “bowed-out” production possibility curve, the opportunity cost of producing more of the good measured on the y-axis increases

Answer the following statement(s) true (T) or false (F)


Ans: True.

Economics

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In the classical model, what occurs if a wage of $20/hour results in unemployed workers?

A) The wage rate will drop, more workers will be hired, and the unemployment rate falls. B) Producers will quickly create more jobs and hire the unemployed workers, so unemployment is short-lived. C) The workers will go on strike to demand that more jobs be created. D) The government will step in and order firms to hire more workers.

Economics

Suppose Christina just saw an advertisement on television for an antidepressant, but it has been a long time since James saw one. According to the availability heuristic:

A. Christina and James are likely to think that depression is equally common. B. Christina is likely to think that depression is more common than James. C. James is likely to think that depression is more common than Christina. D. Christina and James are equally likely to think that people recover from depression.

Economics

In the United States, the purchasing power of money is determined by:

A. the underlying precious metals that back each unit of currency. B. the value of U.S. treasury bonds that back each unit of currency. C. its acceptability. D. Congress, which controls the money supply.

Economics

An imperfectly competitive firm faces a demand curve that is:

A. perfectly elastic. B. more than perfectly elastic. C. downward sloping. D. perfectly inelastic.

Economics