Which of the following statements is true?
a. An opportunity cost is what must be given up in order to get something else.
b. The three fundamental economic questions refer to What to produce? How to produce? and When to produce?
c. The term "investment" refers to the purchase of stocks and bonds and other financial securities.
d. The law of increasing opportunity cost implies that as production of one type of good is expanded then fewer and fewer of other goods must be given up.
a
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Technological change, such as the information technology revolution of the 1990s can shift the aggregate supply curve outward. If, at the same time, the government is decreasing spending, the most likely outcome of these two factors is a(n)
A. increase in the price level. B. decrease in the price level. C. increase in real GDP. D. decrease in real GDP.
The version of the law of diminishing returns that applies to production
A. applies only in the short run. B. is true only when all inputs are variable. C. implies that as we add more workers our output decreases. D. applies in the short and long run.