The negative slope of the production possibilities curve is a graphical way of indicating that:
A. any economy "can have its cake and eat it too."
B. to produce more of one product we must do with less of another.
C. the principle of increasing opportunity costs applies to only parts of the economy.
D. consumers buy more when prices are low than when prices are high.
Answer: B
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Refer to the above table. The value of M1 is
A) $910 billion. B) $2,560 billion. C) $860 billion. D) $1,360 billion.
Suppose that Canadian farmers can grow wheat more cheaply than can U.S. farmers. In the interest of efficiency, what is the desirable outcome?
A) Allow the Canadian farmers to sell their wheat for a lower price. B) Pass a law in Canada mandating a minimum price for wheat equal to what is charged by U.S. farmers. C) Pass a law in the United States mandating a maximum price for wheat equal to what is charged by Canadian farmers. D) Have U.S. citizens boycott Canadian wheat.