Principles of Macroeconomics Study Set 5
Quiz 2: Measuring Macroeconomic Performance: Saving and Wealth
Refer to the Graph Above
Refer to the graph above.The graph indicates that,as more rye is produced,the opportunity cost of producing rye A) increases. B) remains constant. C) decreases. D) eventually becomes infinite. E) is zero.
Explore answers and all related questions
If there were decreasing opportunity costs,then the slope of the production possibilities curve would be A) increasing as one moves down the curve. B) constant as one moves down the curve. C) decreasing as one moves down the curve. D) positive. E) infinitE.
If an economy takes advantage of the comparative advantage of some resources over others,the slope of its production possibilities curve is likely to be A) negative and constant. B) positive and constant. C) negative,but not constant. D) positive,but not constant. E) zero.
The principle of comparative advantage states that specialization increases productivity,but the principle of increasing opportunity costs states that when you increase production of a single good you must use increasingly costly resources.These two principles A) are evidence that economic theory is internally inconsistent. B) are an example of the difference between abstract models and the real world. C) cannot be true at the same time. D) together account for the outward bow shape of production possibility curves. E) explain the circular flow of incomE.
Explore all questions
How it work
Terms And Conditions
© 2020 QuizPlus. All Right Reserved