If the production possibilities frontier is linear, then
A) opportunity costs are increasing as more of one good is produced.
B) opportunity costs are decreasing as more of one good is produced.
C) opportunity costs are constant as more of one good is produced.
D) it is easy to efficiently produce output.
C
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If tax rates are raised to avoid a deficit during a recession, then
a. real GDP and deadweight loss from taxes will rise. b. real GDP will rise and deadweight loss from taxes will fall. c. real GDP will fall and deadweight loss from taxes will rise. d. real GDP and deadweight loss from taxes will fall.
A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct?
A. There are increasing returns to scale B. The long-run average total cost curve is flat C. The law of diminishing returns is proven wrong D. The example is for the short run rather than the long run