The law of increasing opportunity costs states that as production of a particular good ____________, the opportunity cost of producing an additional unit ______________.
a. falls; rises
b. rises; rises
c. falls; remains constant
d. rises; falls
b. rises; rises
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If a public good was left to be provided by the private sector
A) more than the efficient quantity would be produced. B) less than the efficient quantity would be produced C) the efficient quantity would be produced D) the good would be provided at a very low price.
Who promised "two cars in every garage and a chicken in every pot?"
A. Herbert Hoover B. Franklin D. Roosevelt C. Dwight D. Eisenhower D. John F. Kennedy
The amount of good A given up for good B in trade is the
A. Exploitation of consumers. B. Comparative advantage. C. Terms of trade. D. Absolute advantage.
Which of the following would be most likely to improve the standard of living of a less-developed country?
a. Development of strong labor unions.
b. More foreign investment, attracted by the expectation of economic and political stability.
c. Adoption of trade barriers (higher tariffs and quotas).
d. Widespread use of price controls to allocate goods and resources.