production possibilities, Economics Questions

Please answer the following questions.

The bowed shape of the production possibilities curve explains:
- a) that production is inefficient.
- b) the law of increasing marginal cost.
- c) that demand is relatively inelastic.
- d) that production is unattainable.
Transaction costs are included as a component of:
- a) None of these
- b) fixed costs
- c) variable costs
- d) marginal costs
How is price affected when demand increases?
- a) Price curve shifts left
- b) Price stays the same
- c) Price decreases
- d) Price increases
All Tutors are required to create and answer one Economics question of their own.

Ask a question and develop 4 multiple choice responses, 1 correct and 3 incorrect.