According to the law of increasing opportunity costs,

A. The more one is willing to pay for resources; the smaller will be the possible level of production.
B. In order to produce additional units of a particular good, it is necessary for society to sacrifice increasingly larger amounts of alternative goods.
C. Increasing the production of a particular good will cause the price of the good to remain constant.
D. None of the choices are correct.


Answer: B

Economics

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Which of the following contributes to an institutional structure that promotes economic growth?

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More cattle are found to have mad cow disease. As a result, consumer confidence in the safety of beef is shaken. What would an economist predict will happen in the beef market?

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