A straight-line production possibilities boundary differs from a concave boundary in which of the following ways?
A) The straight-line boundary shows opportunity cost, whereas the concave boundary does not.
B) The straight-line boundary illustrates constant opportunity costs, whereas the concave boundary illustrates increasing opportunity costs.
C) A straight-line boundary is associated with a command economy, whereas a concave boundary is associated with a free-market economy.
D) The concave boundary illustrates constant opportunity costs, whereas the straight-line boundary illustrates decreasing opportunity costs.
E) The straight-line boundary does not show scarcity, whereas the concave boundary does.
Ans: B) The straight-line boundary illustrates constant opportunity costs, whereas the concave boundary illustrates increasing opportunity costs.
You might also like to view...
Refer to Figure 11-7. If output is 100 units what is the fixed cost of production?
A) $8 B) $800 C) $1,000 D) This cannot be determined from the diagram.
Hot dogs and hot dog buns would be expected to have:
A) positive income elasticities of demand with respect to each other. B) negative income elasticities of demand with respect to each other. C) a positive cross-price elasticity of demand. D) a negative cross-price elasticity of demand.
The completion of a degree or course of study is a good labor market signal
A) only if what is learned in that educational process relates directly to the job the individual is being considered for. B) only if there is a positive correlation between academic success and wage income. C) primarily because individuals develop good habits in college that serve them well in other areas later on. D) because all individuals have the opportunity (in the United States) to pursue higher education. E) because people who possess the traits that make them more productive in the workplace have an easier time completing an education than those who don't.
If the price of a sofa is $800 in the U.S. and 2400 pesos in Argentina, and the exchange rate is 4 pesos per dollar, what is the real exchange rate?
a. 3 b. 4/3 c. 3/4 d. None of the above is correct.