As an economy increasingly specializes in producing one good, the opportunity cost of that good increases. The opportunity cost increases because
A) not all goods are equally valuable.
B) as more of a good is produced, the profit from its production must rise.
C) resources are not equally productive in all activities.
D) what must be paid to resources increases.
E) human wants are virtually unlimited.
C
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This chapter talked about the idea of independent events
a. Suppose you draw a card from a standard deck of cards, put that card back in the deck, and draw a second card. Are the events "Draw a diamond the first time" and "Draw a diamond the second time" independent events? b. Suppose you draw a card from a standard deck of cards, you do notput that card back in the deck, and draw a second card. Are the events "Draw a diamond the first time" and "Draw a diamond the second time" independent events?
Compared to high school graduates, what is likely to happen to employment and wages for college graduates during a recession?
What will be an ideal response?
Historical data on prices and quantities sold do not provide the basis for drawing an accurate demand curve because
A. reporters who gather these data are often wrong. B. factors other than price may change over time. C. they do not include measures of price close to the quantity axis. D. they sometimes tend to be clustered around one point.
?An aggregate supply curve with a positive slope is associated with an economy in which:
A. ?input prices and final goods prices always change by the same amount. B. ?firms expect output prices to be unaffected by changes in input prices. C. ?nominal wages and salaries do not change much in the short run. D. ? firms expect consumer demand to be unaffected by changes in prices of final goods.