If an Economy Has to Sacrifice Increasing Amounts of Good

question 139

Multiple Choice

If an economy has to sacrifice increasing amounts of good X for each additional unit of good Y produced, then its production possibilities curve is:

• A) bowed out from the origin.
• B) bowed in toward the origin.
• C) a straight line.
• D) a vertical line.

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Definitions:

Household Spending

The total expenditure by household consumers on goods and services, excluding savings and loan repayments.

Past Ten Years

The time period stretching back from the current date to a decade ago.

Services

Intangible products that cannot be stored, touched, or seen and are consumed at the point of delivery, such as healthcare, education, and financial advising.

Present Value

The present value of a future amount of money or series of cash flows, considering a certain interest rate.