The law of increasing opportunity cost implies that
A) producing additional units of one good results in proportionately smaller reductions in output of the other good.
B) producing additional units of one good results in increasing amounts of lost output of the other good.
C) the production possibilities curve will be a straight line.
D) the society will be producing on its production possibilities curve.
Question 2
Media reports often suggest that the increasing public debt is a burden on future generations. What they mean is that
A) it reduces the current level of investment.
B) it makes predicting future unemployment levels unpredictable.
C) it causes deflation.
D) it reduces both nominal and real interest rates.
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