With a good on each axis, the production possibilities frontier is downward-sloping, which suggests
A) there is no limit to the amount of each good that can be produced.
B) the production of one good ultimately means sacrificing production of the other.
C) there are no opportunity costs of producing either of the goods.
D) All of the above are true.
B
You might also like to view...
If countries where wages are far lower than those in the U.S. manufacture similar but vastly cheaper products, then:
a. U.S. consumers will buy those cheaper products b. U.S. producers will lose customers c. There will be a downward pressure on U.S. wages, and reduced employment d. All of the above statements are true.
The real interest rate is 4 percent and the nominal interest rate is 6 percent. Is there inflation or deflation? What is the inflation or deflation rate?
a. deflation; 2 percent b. deflation; 10 percent c. inflation; 2 percent d. inflation; 10 percent