The economy's factors of production are not equally suitable for producing different types of goods. This principle generates:
A) economic growth.
B) technical efficiency.
C) resource underutilization.
D) the law of increasing opportunity cost.
Ans: D) the law of increasing opportunity cost.
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In which of the four market structures do sellers act as price takers?
A) Perfect competition B) Monopolistic competition C) Monopoly D) Oligopoly
In the early stages of macroeconomic model building, the money supply is regarded as a policy ________ that is under ________ control by the Federal Reserve
A) goal, perfect B) goal, imperfect C) instrument, perfect D) instrument, imperfect
When would it be plausible to describe the demand for a product by drawing a straight line, Q = a - bP?
A. Only if no important factors other than price affect demand B. In the vast majority of scenarios C. Practically never D. If we believe that factors other than price alone determine demand
A higher real interest rate typically induces consumers to:
a. To borrow more money. b. Save less c. Purchase more goods that are bought using credit d. Purchase fewer goods that are bought using credit