Author Question: The principle of increasing opportunity cost leads to A) a production possibilities frontier ... (Read 243 times)

lidoalex · **on:** Jun 29, 2018

The principle of increasing opportunity cost leads to

A) a production possibilities frontier (PPF) that is bowed inward from the origin.
B) a production possibilities frontier (PPF) that is bowed outward from the origin.
C) an inward shift of the production possibilities frontier (PPF).
D) an outward shift of the production possibilities frontier (PPF).

Question 2

Which of the following is a method used by government to cope with the situation in which production of a good creates an external benefit?

A) removing property rights
B) subsidizing production
C) marketable permits
D) running a lottery
E) imposing Coasian taxes