If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. negatively sloped and "bowed inward" toward the origin.
C. negatively sloped and "bowed outward" from the origin.
D. a positively sloped straight line.
Answer: C
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In the above figure, when the price of a gallon of gasoline falls, which points in the above figure are used to derive points on the consumer's demand curve for gasoline?
A) points A and B B) points A and C C) points B and C D) points A, B, and C
Consider the relationship between a kinked demand curve and the corresponding marginal revenue curve. Below the point where the kinked demand curve has its characteristic kink, the marginal revenue curve is
a. positively sloped b. a horizontal line c. a vertical line d. discontinuous e. nonexistent because of the kink
Which of the following government entities relies most heavily on sales taxes?
a. local government b. state government c. federal government d. the Social Security Administration
In the short run, the marginal cost of the first unit of output is $20, the average variable cost of producing three units of output is $16, and the marginal cost of producing the second unit of output is $16. What is the marginal cost of producing the third unit of output?
A. $12 B. $16 C. $20 D. $48