The Slope of a Production Possibilities Curve Represents the ________

question 67

Multiple Choice

The slope of a production possibilities curve represents the ________.

• A) marginal cost of producing the good measured on the x-axis
• B) marginal cost of producing the good measured on the y-axis
• C) opportunity cost of producing the goods
• D) ratio of the average cost of producing both goods

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Definitions:

Deposits

Funds placed into an account at a banking institution for safekeeping and potential interest accrual.

Reserve Ratio

The reserve ratio is the fraction of deposits that a bank is required to hold in reserve and not lend out, set by the central bank to control the money supply.

Money Multiplier

A concept that describes the amount of money that banks can generate with each dollar of reserves.

Percent

A mathematical term describing one hundredth of a particular quantity; a unit of proportion or rate expressed as a fraction of 100.