The law of increasing opportunity cost means that:
A) higher wages, rents, and interest will increase opportunity costs.
B) opportunity cost will decrease the more you decide to produce more of one good along a production possibilities curve.
C) opportunity cost increases when you produce more of one good while moving along a production possibilities curve.
D) costs of production decrease at first, but then eventually rise.
Ans: C) opportunity cost increases when you produce more of one good while moving along a production possibilities curve.
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Accumulating debt poses a problem for the U.S. federal government because
A) it is currently in danger of defaulting on the debt. B) the debt has to ultimately be paid off. C) building roads and bridges do not yield enough benefits to justify their cost. D) a large debt-to-GDP ratio causes crowding out.
Which of the following U.S. antitrust laws prohibits mergers through the acquisition of a firm's assets if the merger would lessen competition?
a. the Sherman Antitrust Act b. the Clayton Act c. the Robinson-Patman Act d. the Celler-Kefauver Anti-Merger Act e. the Federal Trade Commission Act
Which market is most likely to witness such actions and reactions as frequent new-product introductions, free samples, and aggressive advertising campaigns?
A. Oligopoly B. Perfect competition C. Monopoly D. Monopolistic competition
Which of the following would tend to encourage more innovation in the United States?
A. Limits on the immigration of scientists and engineers B. Restrictions on the risk that venture capital firms can take C. Stricter enforcement of the patent laws D. Protection of manufacturing industries through tariffs and trade barriers