A production possibilities frontier with a bowed-outward shape indicates
A) the possibility of inefficient production.
B) constant opportunity costs as more and more of one good is produced.
C) increasing opportunity costs as more and more of one good is produced.
D) decreasing opportunity costs as more and more of one good is produced.
Answer: C
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Inflation can be caused by
a. increases in aggregate demand only b. increases in aggregate supply only c. decreases in aggregate supply only d. increases in aggregate supply or decreases in aggregate demand e. increases in aggregate demand or decreases in aggregate supply
The pre-2008 boom affected the Eurozone nations, many of which engaged in:
A) fiscal restraint. B) overconsumption, excessive and wasteful construction, and asset speculation. C) tight monetary policies that resulted in recession. D) wage restraint policies that angered unions.
The market
A. Always provides the optimal mix of goods and services. B. On its own may not always provide the optimal mix of goods and services. C. Always provides a better mix of goods and services without government intervention than it does with government intervention. D. May not produce the optimal mix of output, which is known as government failure.
The combination of psychology and economics to determine individual decision making is known as
A) behavioral economics. B) psychonomics. C) neuronomics. D) positive analysis.