The fact that a society's production possibilities curve is bowed out from the origin of a graph demonstrates the law of:
A) increasing opportunity cost.
B) decreasing opportunity cost.
C) constant opportunity cost.
D) convex opportunity cost.
Ans: A) increasing opportunity cost.
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If people stand to produce at lower cost when specializing and producing in larger quantities
a. they cannot gain from trade because each one is just as potentially productive as another. b. they cannot gain from trade because most people's wants can be easily satisfied with what they can produce themselves. c. they cannot gain from trade if they have similar tastes. d. they can gain from trade by specializing and increasing productivity.
Free trade is beneficial because it:
A) reduces competition. B) leads to less use of the world's resources. C) results in a wider array of consumer products. D) leads to the production of free goods.
Output that provides benefits without the production of a tangible product
What will be an ideal response?
A fund that takes household savings and puts them into ________ projects in exchange for a share of the profits if the new business succeeds is a venture capital fund.
A. zero-risk B. low-risk C. high-risk D. government