Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.1Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)S0NA10 T1 9 U2 7 V3 4NAOn the basis of Table 1.1, you may infer that the law of increasing opportunity costs applies to increasing production of
A. Stealth bombers but not to B-1 bombers.
B. B-1 bombers.
C. Both B-1 bombers and Stealth Bombers.
D. Neither B-1 bombers or Stealth Bombers.
Answer: C
Economics
You might also like to view...
How do the owners of a corporation relate to the business?
A) The owners and the business are not separate legal entities. B) The owners and the business are separate legal entities. C) The assets of the owners are considered the same as the assets of the business. D) None of these describe the legal relationship of the owners to the business.
Economics
Which of the following contributed to the increase in the national debt during the 1990s?
A. A decrease in military expenditures. B. The bailout of failed savings and loan associations. C. A decrease in discretionary spending. D. A period of inflation.
Economics