Increasing opportunity cost along a bowed-out production possibilities frontier occurs because
A) of inefficient production.
B) of the scarcity of factors of production.
C) of ineffective management by entrepreneurs.
D) some factors of production are not equally suited to producing both goods or services.
D
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Assume that Matt, Joe, and Teresa are the only citizens in a community. A proposed public good has a total cost of $1000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $500 for Matt, $280 for Joe, and $260 for Teresa. In a majority vote, this proposal will most likely be:
A. Accepted; two in favor and one against B. Defeated; two against and one in favor C. Accepted; three in favor and none against D. Defeated; none in favor and three against
Deflation is a situation in which the:
A. prices of most goods and services are rising over time. B. quantity of goods and services produced is increasing over time. C. prices of most goods and services are falling over time. D. quantity of goods and services produced is decreasing over time.