If a country has a liner (downward sloping) production possibilities frontier, then production is said to be subjected to ?
Correct answer: A. constant opportunity costs
- A. constant opportunity costs
- B. decreasing opportunity costs
- C. first increasing and then decreasing opportunity costs
- D. increasing opportunity costs
Explanation
A linear production possibilities frontier has a constant slope, meaning that the same quantity of one good must always be sacrificed to produce an additional unit of the other. This is constant opportunity cost.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
In aukarky, when a community maximizes its standard of living, its production and consumption point is ?
In autarky, when a community maximizes its standard of living its production point is ?
Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?
Comparative advantage is determined by ?
In the classical model of Ricardo, the direction of trade is determined by ?
The gains from international trade are closely related to ?