How does an economy represented by a straight-line production ...

[fahad]

How does an economy represented by a straight-line production possibilities curve differ from one represented by a traditional production possibilities curve with a bowed shape?
 
  A) In the economy represented by a straight-line production possibilities curve, there is no opportunity cost.
  B) In the economy represented by a straight-line production possibilities curve, neither good is scarce.
  C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply.
  D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced.

Question 2

Ad valorem taxes
 
  A) are not used in the United States.
  B) are assessed as a percentage of a good's price.
  C) are based on income levels.
  D) are applied only to imports.

[coyin]

Answer to Question 1

C

Answer to Question 2

B

[fahad]

Thank you

[coyin]

Happy to help you