A. constant opportunity costs
B. decreasing opportunity costs
C. first increasing and then decreasing opportunity costs
D. increasing opportunity costs
Related Mcqs:
- Any combination of products inside the production possibility frontier is ?
A. Allocatively inefficient
B. X inefficient
C. Consumer inefficient
D. Productively inefficient - An economy may operate outside the production possibility Frontier if ?
A. It is not utilizing its resources fully
B. It is being productively efficient
C. It is a mixed economy
D. It is trading other economies - An outward shift of the production possibility frontier may be caused by ?
A. An increase in demand
B. More government spending
C. Better training of employees
D. Productive inefficiency - If a country has a liner (downward sloping) production possibilities frontier, then production is said to be subjected to ?
A. constant opportunity costs
B. decreasing opportunity costs
C. first increasing and then decreasing opportunity costs
D. increasing opportunity costs - Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?
A. rises
B. stays the same
C. could rise or fall depending on the relative prices of the two goods.
D. falls - Which of the following will not shift a country’s production possibilities frontier outward ?
A. an advance in technology
B. an increase in the labor force
C. an increase in the capital stock
D. a reduction in unemployment - Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A - Points on the production possibilities frontier are ?
A. inefficient
B. normative
C. unattainable
D. efficient - Possibility of negative events or changes in the business climate of country is called?
A. Domestic risk
B. Political risk
C. National risk
D. Country risk - The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the?
A. Ricardo Malthus theorem
B. Heckscher Ohlin theorem
C. Lucas-Laffer theorem
D. Friedman Samuelson theorem
