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
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Which of the following is part of the cost of income transfers?
A) Tax-collecting agencies cost money to administer. B) Taxing incomes encourages people to work harder. C) Income transfers make the results more unfair. D) Income transfers increase the size of the economic pie. E) Income transfers are a similar to allocating resources using a lottery.
Product differentiation allows the firm to
a. raise price and lower quantity demanded b. raise price without suffering a substantial loss of sales c. shift the market demand curve to the left d. shift the market supply curve to the left e. decrease barriers to entry
Taxes on sales of liquor, tobacco, and tires are examples of
a. direct taxes. b. excise taxes. c. progressive taxation. d. loopholes.
Which of the following types of unemployment would best characterize a swimming instructor's unemployment during the winter months?
A. Structural unemployment. B. Frictional unemployment. C. Seasonal unemployment. D. Cyclical unemployment.