As more of a good, such as television sets, is produced, the opportunity costs of producing it increases. This most likely occurs because
A. resources are not equally well suited to producing all goods, and as more of a good is produced, it is necessary to use resources less well suited to the production of that good.
B. consumers would be willing to pay higher prices for the good as more of the good is produced.
C. as more of a good is produced, the quality of that good declines, and therefore the costs of production increase.
D. as more of a good is produced, the inputs used to produce that good will increase in price.
Answer: A
You might also like to view...
Which of these transactions results in an increase in M2?
A) certificate of deposit matures, adding $520 to your checking account B) withdrawal of $100 cash from your checking account C) depositing a bank loan of $400 into your savings account D) depositing a $300 paycheck into your savings account E) none of the above
Suppose you are in charge of product pricing and marketing strategy for a pharmaceutical company. You will have greater ability to independently set prices for your product if:
A) there are no close substitutes for your product. B) there are lots of other firms selling closely related products in your market. C) your market is perfectly competitive. D) none of the above
Refer to the above figure. Suppose E is the original equilibrium. Japanese residents have increased their demand for U.S. goods. This will lead to
A) a depreciation of the yen and an increase in the quantity of yens sold per week. B) a depreciation of the yen and a decrease in the quantity of yens sold per week. C) an appreciation of the yen and an increase in the quantity of yens sold per week. D) an appreciation of the yen and a decrease in the quantity of yens sold per week.
For a renter, the income effect of an increase in apartment rents will
a. have a greater effect than the income effect of an increase in the price of chewing gum b. have no impact on the demand curve for apartments, because everything except price is assumed constant c. have less of an effect than the income effect of an increase in the price of chewing gum d. be almost negligible, because housing is a necessity e. occur only when income increases