According to the law of increasing opportunity cost,
a. production points outside the production possibility frontier are unattainable
b. the production possibility frontier becomes flatter as production increases along the horizontal axis
c. the opportunity cost of producing a good rises as production of that good falls
d. production points inside the production possibility frontier are unattainable
e. the opportunity cost of producing a good rises as production of that good rises
E
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Which of the following is not a characteristic of less-developed countries?
a. High rates of illiteracy. b. High unemployment. c. Over half of the labor force in agriculture. d. Low savings and investment rates. e. Low infant mortality rates.
If the price of a good shown on the vertical axis of a budget graph is cut in half and the price of the good on the horizontal axis is cut by 75%, then the budget constraint shifts
A. right and becomes steeper. B. left and becomes steeper. C. right and becomes flatter. D. left and becomes flatter.