Moving from one point on the production possibilities frontier to another ________
A) involves a tradeoff but does not incur an opportunity cost
B) involves an opportunity cost but no tradeoff
C) involves a tradeoff and incurs an opportunity cost
D) involves no tradeoff but it does incur an opportunity cost
C
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What would happen to the optimal amount of pollution if studies found dangerous effects of SO2 cause cancer and the government takes away subsidies to companies for cleaning up their pollution?
A. Uncertain B. Increase C. Stay the same D. Decrease
A tax multiplier equal to ?4.30 would imply that a $100 tax increase would lead to a:
a. $430 decline in real GDP. b. $430 increase in real GDP. c. 4.3 percent increase in real GDP. d. 4.3 percent decrease in real GDP. e. 43 percent decrease in real GDP.
In Keynes's view, an excess quantity of money demanded causes people to:
A. sell bonds and the interest rate rises. B. buy bonds and the interest rate falls. C. buy bonds and the interest rate rises. D. increase speculative balances.
In an indifference curve diagram, the quantities of good Y are measured along the vertical axis and the quantities of good X are measured along the horizontal axis. The marginal rate of substitution is defined as
A) how much good Y you must give up to get one more unit of good X. B) how much good Y you are willing to give up to get one more unit of good X. C) the relative price of good Y in terms of good X. D) how much you prefer to substitute good X for good Y.