As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.
Answer: A
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If workers suddenly decide to value more their leisure time than before, this
A) shifts the labor supply curve to the left, resulting in a wage increase and less workers hired. B) shifts the labor supply curve to the right, resulting in a wage increase and less workers hired. C) shifts the labor supply curve to the left, resulting in a wage decrease and less workers hired. D) shifts the labor supply curve to the right, resulting in a wage increase and more workers hired.
In the absence of any legally binding enforcement mechanism, individual cartel producers may find it advantageous to cheat on the agreements and engage in secret price concessions
a. true b. false