A bowed outward production possibilities curve occurs when
A) opportunity costs are constant.
B) resources are not scarce.
C) additional units of output of one good necessitate greater reductions in the other good.
D) there are shortages in the goods being produced.
Ques. 2Which of the following is NOT a necessary condition for oligopoly?
A) barriers to entry
B) strategic dependence of firms
C) differentiated products
D) either a small number of firms or market dominance by a small number of firms
Ques. 3The difference between gross public debt and net public debt is that
A) net public debt includes interagency borrowing while the gross domestic product debt does not.
B) net public debt is expressed in real terms while gross public debt is expressed in nominal terms.
C) gross public debt includes interagency borrowing while net public debt does not.
D) gross public debt is held by individuals while net public debt is held by the government.
Ques. 4According to dynamic tax analysis, continually increasing the tax rate will eventually
A) cause an increase in the tax base.
B) have no impact on the tax base.
C) cause a decrease in the tax base.
D) result in an initial decrease in the tax base followed ultimately by a rise in the tax base.
Ques. 5A bowed production possibilities curve is consistent with
A) an unchanged opportunity cost.
B) a technologically inefficient society.
C) the underutilization of productive resources.
D) highly specialized resources.
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