Generally, opportunity costs increase and the production possibilities frontier bows outward. Why?
A) Unemployment is inevitable.
B) Resources are not equally useful in all activities.
C) Technology is slow to change.
D) Labor is scarcer than capital.
B
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In an industry with a large number of firms,
A) each firm will produce a large quantity, relative to market demand. B) one firm will dominate the market. C) collusion is impossible. D) competition is eliminated. E) barriers to exit must exist.
Which of the following positions is included on the Federal Open Market Committee?
A) Comptroller of the Currency B) Chairman of the Council of Economic Advisors C) Chairman of the Federal Reserve Board of Governors D) Secretary of the Treasury
Which of the following best explains why marginal cost eventually increases as output increases?
a. economies of scale occur b. average cost increases c. total cost increases d. marginal product decreases e. fixed cost is constant
Workers usually negotiate compensation in terms of the nominal wage because wage agreements are based on expected price levels
a. True b. False Indicate whether the statement is true or false