A production possibilities frontier (PPF) is characterized by increasing opportunity costs when
a. the PPF is a straight line
b. the PPF is bowed inward
c. the PPF is bowed outward
d. increasing opportunity costs do not occur with PPF's
c
You might also like to view...
The figure above shows the U.S. production function. How would an increase in income taxes be shown in the figure?
A) a movement from point C to point B B) a movement from point A to point B C) an upward shift or rotation of the production function D) a downward shift or rotation of the production function E) None of the above because the effects of an increase in taxes cannot be shown in the figure.
For a given real exchange rate, a nominal appreciation of the domestic currency will result from
A) a decline in the terms of trade. B) an increase in the price of the foreign good. C) an increase in the price of the domestic good. D) an increase in the domestic rate of inflation.