What is the reason for the law of increasing opportunity costs?
What will be an ideal response?
Resources have varying abilities and those with lower opportunity costs of producing a good will be used to produce it before resources with higher opportunity costs produce it.
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The principle of comparative advantage states that total output is greatest when each product is made by the country that has the _____________.
Fill in the blank(s) with the appropriate word(s).
A reason for dissavings in the economy could include:
A. College students who overspend with expectations of a higher income after their education is complete. B. Breakup of families where the major wage earner leaves the household. C. Death of a household's major wage-earner. D. Unforeseen expenditures that cannot be covered by immediate household income. E. All of the above.
Macroeconomics primarily examines:
A. the behaviour of individual households and firms. B. how prices are determined within individual markets. C. broad issues such as national output, employment and inflation. D. the output levels that maximize the profits of business firms
Economic scarcity arises from
a. inefficient production. b. limited resources and limitless wants. c. limited wants and limitless resources. d. exploration.