Along a bowed-out production possibilities frontier, as more of one good is produced,
a. the opportunity cost of producing that good remains constant
b. the opportunity cost of producing that good decreases
c. efficiency decreases
d. the opportunity cost of producing both goods must remain constant
e. technology remains constant
E
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A cafeteria is willing to produce 100 cups of coffee when the price is $1 and 150 cups of coffee when the price is $1.30, other things being equal. The price elasticity of supply of coffee is
A) 1.53. B) 0.67. C) 0.10. D) 0.50.
Which statement best describes the increase in working capital in the United States from the early 1950s until the 2000s?
a. The average U.S. worker in the late 2000s was working with physical capital worth almost twice as much as that of the average worker of the early 1950s. b. The average U.S. worker in the late 2000s was working with physical capital worth almost four times as much as that of the average worker of the early 1950s. c. The average U.S. worker in the late 2000s was working with physical capital worth almost five times as much as that of the average worker of the early 1950s. d. The average U.S. worker in the late 2000s was working with physical capital worth almost three times as much as that of the average worker of the early 1950s.