If the principle of increasing marginal opportunity cost holds, the opportunity cost of producing each additional unit of a good should fall as production of that good rises.
Answer the following statement true (T) or false (F)
False
See the definition of the principle of increasing marginal opportunity cost in the text.
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Which of the following does not appear in GDP as a part of government spending?
A. Clipboards at the Department of Motor Vehicles. B. Maintenance of government buildings. C. Social Security payments. D. City fireworks displays on the Fourth of July.
Loans made between borrowers and lenders are:
A. not part of either parties' assets or liabilities until the loans are repaid. B. assets to the lenders and liabilities of the borrowers since the promises are made to the lenders. C. liabilities to the lenders and assets to the borrowers since the borrower obtains the funds. D. liabilities to both the lenders and the borrowers.
A decrease in aggregate demand as a consequence of government decisions to alter its levels of expenditure and revenues involves which of the following?
a. Decreases in spending. b. Increases in tax rates and collections and decreases in spending. c. Decreases in tax rates, collections, and spending. d. Increases in spending and decreases in tax rates and collections.
Opportunity cost is
A. the financial cost of purchasing a good or services B. the marginal benefit minus the marginal cost C. the expected value of buying a good or service D. the value of the opportunity that you give up when you choose one activity instead of another one