As we move along a production possibilities curve and acquire larger and larger amounts of one good (e.g., guns), the sacrifices of the alternative good (e.g., butter) become larger and larger. This is an illustration of
A. the law of demand.
B. the law of supply.
C. decreasing opportunity costs.
D. increasing opportunity costs.
D. increasing opportunity costs.
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Taxes affect a. only buyers
b. only sellers. c. only buyers and sellers. d. buyers, sellers, and government tax revenue.
It's logical, it's a rule of thumb, it's an economic guideline: As long as MR < MC, and the firm responds by decreasing the quantity it produces,
a. profit will equal zero b. profit will increase c. profit will decrease d. profit will remain unchanged e. the firm will minimize loss
Economists generally believe that rent control is
a. an efficient and fair way to help the poor. b. inefficient but the best available means of solving a serious social problem. c. a highly inefficient way to help the poor raise their standard of living. d. an efficient way to allocate housing, but not a good way to help the poor.
Each of the following would be an example of technological change, EXCEPT
A. increases in output due to increases in capital. B. improvements in the qualities of resources. C. improved knowledge about how to combine resources. D. the introduction of totally new production processes.