The law of increasing opportunity costs states that:
A. Costs of production increase for one good, but costs decrease for the other good
B. Increases in wages and other resource costs is what the increasing opportunity costs refer to
C. Increases in the production of one good require larger and larger sacrifices of the other good
D. Increases in the production of one good make the production of that good and easier
Answer: C
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The monopolistic competitor
A. produces at the minimum point of her average total cost curve. B. maximizes profits but does not minimize losses. C. is usually a small firm. D. can be a monopoly.
Overall, economists believe that deregulation of industries formerly subjected to industrial regulation:
A. has been a clear failure. B. is neutral in its impact to society's well-being, creating minimal net benefits at best. C. has produced large net benefits for consumers and society. D. has produced sizable efficiency gains in the communications industry, but not in the transportation industry (railways, trucking, airlines).
________ occurs when congressional representatives trade votes.
A. An injunction B. The voting paradox C. Logrolling D. Market failure
The term structure of interest rates:
A. usually results in a flat yield curve. B. usually results in a downward sloping yield curve. C. represents the variation in yields for securities differing in maturities. D. always results in an upward sloping yield curve.