A. constant opportunity costs
B. decreasing opportunity costs
C. first increasing and then decreasing opportunity costs
D. increasing opportunity costs
Related Mcqs:
- Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by ?
A. An fall in demand
B. An increase in supply
C. improvements in production technology
D. An increase in demand - 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 - Points on the production possibilities frontier are ?
A. inefficient
B. normative
C. unattainable
D. efficient - If a country has a bowed out (concave to the origin) production possibility frontier then production is said to be subject to ?
A. constant opportunity costs
B. decreasing opportunity costs
C. first increasing and then decreasing opportunity costs
D. increasing opportunity costs - The downward sloping marginal physical product of labor is the firm’s ?
A. Supply of labor
B. Short-run demand curve for labor
C. marginal cost of labour
marginal revenue product of labor - If Hong Kong and Taiwan have identical production possibilities curves that are subject to increasing opportunity costs ?
A. Trade would depend on difference in demand conditions
B. Trade would depend on economies of large-scale production
C. Trade would depend on the use of different currencies
D. There would be no basis for gainful trade - 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 - 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
