If a production possibilities curve were bowed in or convex to the origin of a graph, it would demonstrate:
A) increasing opportunity cost.
B) decreasing opportunity cost.
C) constant opportunity cost.
D) fluctuating opportunity cost.
Answer: B) decreasing opportunity cost.
Economics
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In the classical model, the interest rate will adjust to equate
A) consumption spending with real GDP. B) saving with investment. C) export spending with import spending. D) the economic growth rate with the growth rate of import spending.
Economics
In the long run:
A) all factors of production are fixed. B) only some inputs of a firm can be changed. C) all firms earn positive economic profits. D) all factors of production can be changed.
Economics