A production possibilities curve is negatively sloped because:
a. the price of a good falls as you move down along the curve
b. resources are wasted as you move along the curve.
c. it is not possible to adjust production decisions at all once an economy operates on the curve.
d. once on the frontier, it is only possible to increase production of one good by reducing production of the other.
d
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The price of apples falls. What happens in the market for apple pies?
A) The equilibrium price falls, and the equilibrium quantity rises. B) The equilibrium price rises, and the equilibrium quantity falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.
Under the new discount window system, the interest rate for primary credit loans is set
A) one percentage point below the federal funds rate target. B) one percentage point above the federal funds rate target. C) two percentage points above the federal funds rate target. D) two percentage points below the federal funds rate target.