A straight-line production possibilities curve takes this shape because
A. resources are better suited for producing one output than another.
B. resources are fixed.
C. the opportunity cost of producing more of a good is decreasing.
D. the opportunity cost of producing a good is constant.
Answer: D
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Firms that extend credit to borrowers using funds from raised from savers are called:
A. financial intermediaries. B. stock brokers. C. bond dealers. D. central banks.
In the above figure, an increase in cost of the cheese used to produce pizza
A) shifts the supply curve from S to S1. B) shifts the supply curve from S to S2. C) results in a movement from point a to point b. D) results in a movement from point b to point a. E) has no effect.
A firm that can borrow from a bank any amount it wishes up to a certain limit, and at any time up to a certain date, is said to have a
A) repurchase agreement. B) trade credit. C) a line of credit. D) internal financing.
An increase in demand for a product and a reduction in the costs of production would: a. increase the equilibrium quantity and increase the equilibrium price
b. increase the equilibrium quantity and decrease the equilibrium price. c. increase the equilibrium quantity and cause an indeterminate change in the equilibrium price. d. decrease the equilibrium quantity and cause an indeterminate change in the equilibrium price.