If the production possibilities curve is a downward sloping straight line, then
A) resources are highly specialized, making it difficult to use them for alternative uses.
B) technological change has increased.
C) production is efficient only when producing at the mid-point.
D) all resources must be perfectly adaptable for alternative uses.
Answer: D
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As a consumer consumes more and more of a product in a particular time period, eventually marginal utility
A) fluctuates. B) rises. C) is constant. D) declines.
"The United States has fallen behind Japan and most of Europe in terms of competitiveness." Do you agree or disagree? Why?
What will be an ideal response?
Refer to the following graph to answer the question:
Suppose price rises from $90 to $110. Using representative arrows, the price effect is a relatively ________ (short, long) arrow pointing ________ (upward, downward).
A. long; downward B. short; upward C. short; downward D. long; upward
Which of the following is the best measure of an increase in actual output?
A. Nominal GDP. B. Real GDP. C. Per capita GDP. D. GDP per dollar.