As output moves from point a to point b to point c along the PPF in the above figure, the opportunity cost of one more unit of good X
A) rises. The opportunity cost of one more unit of good Y also rises.
B) rises. The opportunity cost of one more unit of good Y falls.
C) falls. The opportunity cost of one more unit of good Y rises.
D) falls. The opportunity cost of one more unit of good Y also falls.
B
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According to this Application, home equity is the single largest component of net wealth for most families in the United States. As home equity falls
A) autonomous consumption will decrease, shifting the consumption function downward. B) the MPC will decrease, increasing the slope of the consumption function. C) autonomous consumption will decrease, shifting the consumption function upward. D) the MPC will decrease, decreasing the slope of the consumption function.
The incidence of a per-unit tax on a good is identical for buyers and sellers of the good if:
A) the buyers and sellers of the good are equally sensitive to price changes. B) the elasticity of market demand exceeds the elasticity of market supply. C) the market supply curve is flatter than the market demand curve. D) the market demand curve is horizontal.