The law of increasing opportunity costs states that as
A) less of a good is produced, the higher the opportunity costs of producing that good.
B) more of a good is produced, the lower the opportunity costs of producing that good.
C) more of a good is produced, the higher the opportunity costs of producing that good.
D) more of a good is produced, the opportunity cost of producing the good remains the same.
E) a and b
C
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Comparative advantage refers to a country's:
A. Ability to produce a specific good with fewer resources than another country. B. Monopoly power in the world market for a specific good. C. Ability to sell a specific good for a higher price than another country. D. Ability to produce a specific good at a lower opportunity cost than another country.
A saver can eliminate ________ risk through ________.
A. systemic; diversification B. systemic; asset valuation C. idiosyncratic; asset valuation D. idiosyncratic; diversification
Exhibit 6-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 As shown in Exhibit 6-9, the average total cost of producing 5 units is:
A. $20. B. $30. C. $50. D. $250.