C. "there is no such thing as free lunch", Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. ⟵ Bernsen Law Firm A Supply Curve That Illustrates The Law Of Supply​ ⟶ If the current output of shoes is Q1, then. The negative slope of the production possibilities curve is a graphical way of indicating that. Which of the following is a land resource? B. Strawberries are becoming more popular. If the production possibilities curve is a straight line, B. economic resources are perfectly substitutable between the production of the two goods, A production possibilities curve illustrates. In the figure are two linear production possibilities curves for countries Alpha and Beta. As compared to production alternative D, the choice of alternative C would. The law of increasing opportunity costs states that as production of a product increases, the cost to produce an additional unit of that product increases as well. This happens when all the factors of production are at maximum output. A. tend to generate a more rapid growth rate. Macroeconomics approaches the stud of economics from the viewpoint of. D. resources are not equally suited for alternative uses. The optimal allocation of resources is found, Refer to the diagram. D. Given its resources and technology, this society is incapable of simultaneously producing 3 units of tractors and 15 units of bread. Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. Other things equal, which of the following positions relative to PP1 would be the most likely to result in a future production possibilities curve of, Refer to the diagram. C. the maximum amounts of two goods that can be produced, assuming the full use of available resources. What happens as production of one item switches to the production of another item? C. would involve an inefficient use of the economy's scarce resources, Refer to the table. Law of increasing opportunity cost 38.What is meant by the law of increasing opportunity cost? Which of the following statements pertains to macroeconomics? Some agricultural sub-Saharan nations of Africa have overfarmed and overgrazed their land to the extent that significant portions of it have turned into desert. increases in wages cause increases in the costs of production. Which one of the following expressions best states the idea of opportunity cost? Let's say you own a landscaping company and you add several brand-new lawn mowers to your business for $3,000. If fewer resources are used than are available, they are underutilized and so fewer goods are produced. An efficient economy uses resources in such a way as to maximize the output of goods and services. B. suggests that the use of resources in any particular line of production means that alternative outputs must be forgone. The law of increasing costs holds that the opportunity cost: a. of a good decreases as the quantity of the good produced increases b. of a good is proportional to the resources used in its production c. of a good increases as more of the good is produced d. of a good does not change with the resources used in … Scarcity requires people to make choices. Refer to the tables. A. can attain some combination of goods lying outside its production possibilities curve. Suppose an economist says that "other things equal, the lower the price of bananas, the greater the amount of bananas purchased." Giving up one benefit in order to gain a greater benefit is a(n) ______. Refer to the production possibilities curve. What does this mean? C. an increase in the average skill level of all occupational groups. Refer to the diagram. Opportunity costs are. B. specializing and engaging in international trade. Cost vs Quality A manufacturer of headphones is facing stiff competition from low cost products with similar designs to their own. Which of the following are factors of production? The law of increasing opportunity costs states that A. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of another good to do so. A. Duckistan is fully employing its resources, but Herbania is not. We can conclude that. We can conclude that. Refer to the graphs. B. all production involves the use of scarce resources and thus the sacrifice of alternative goods. Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. Efficiency implies that it is impossible to get more of one good without getting less of another. A person should consume more of something when its marginal, B. social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity, The study of economics is primarily concerned with, C. Choices that are made in seeking the best use of resources, B. This economy. The town of Riverton makes many tires. B. a detailed examination of specific economic units that make up the economic system. B. Human-made objects used to create other goods and services are physical capital. You want a vacation in Cuba but your time is limited. Its economic adjustment from peacetime to wartime can best be described by the movement from point, Refer to the production possibilities curve. B. may or may not be free to individuals but are never free to society. C. achieving points beyond the production possibilities curve through international specialization and trade. A. the economy was not employing all of its resources before the policy change. B. produce more TVs and fewer hamburgers. The law of increasing costs means that when an economy increases the production of one item, what happens to the opportunity cost? As it relates to production possibilities analysis, the law of increasing opportunity cost is reflected in curve. Anyone who opens a business, such as the artist, is an entrepreneur. Riverton decides to grow more strawberries and make fewer tires. B. Rather, in its place they have substituted opportunity or alternative cost. In deciding whether to study for an economic quiz or go to a concert, one is confronted by the idea of. B. produce at some point closer to its production possibilities curve. What does the economic concept of "guns or butter" mean? Law Increasing Opportunity Cost As production of a good increases, the opportunity cost of producing an additional unit rises. The fact that the slope of the production possibilities curve becomes steeper as we move down along the curve indicates that. B. a negative slope that increases as we move along it from left to right. The concept of opportunity cost is best represented by the, Refer to the diagram. Which of the following people is an entrepreneur? What explains the bow shape of PPC? What is the reason for the law of increasing opportunity costs… B. all factors other than the price of bananas (for example, consumer tastes and incomes) are assumed to be constant. The law of increasing costs states that when production increases so do costs. What kinds of goods can be compared on a production possibilities curve? 39.What does it mean to be operating INSIDE, OUTSIDE, or ON the PPF ? A. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of another good to do so. The law of increasing costs says that as production increases, it eventually becomes less efficient. If all discrimination in the United States were eliminated, the economy would. Which of the following is a capital resource? Uses its resources to make the most goods and services. In economics, the pleasure, happiness, or satisfaction received from a product is called, When economists say that people act rationally in their self-interest, they mean that individuals, A. The law of increasing opportunity cost says that as you increase the production of one good, the opportunity cost to create a subsequent good is increased. Scarcity exists because all resources are limited. This fact. Underutilization is the use of fewer resources than an economy is capable of using. D. the combinations of two goods that can be produced with society's available resources. D. more consumer goods can only be produced at the cost of fewer capital goods. This occurs because the producer reallocates resources to make that product. B. Based on. The production possibilities frontier shows the maximum combination of two types of goods that can be produced using all resources. The man function of the entrepreneur is to, Which of the following is NOT a main function of the entrepreneur, The process of producing and accumulating capital goods is called, Which of the following is NOT considered by economists to be and economic resource. Which of the following is a normative statement? The company is producing fewer caps than it could be. D. Herbania is technologically superior to Duckistan in producing civilian goods. Which of the following terms implies the LEAST degree of confidence in an economic generalization? B. the production possibilities curves of such nations have shifted inward. Investopedia defines opportunity cost as the cost of an action not taken in order to pursue a particular course of action. This statement is, A. Which is an example of an economic shortage? Which of the following is a positive statement? This is an example of? If North Cantina is producing at production alternative B, the opportunity cost of the eleventh unit of consumer goods will be, Refer to the tables. c.) along a production possibilities curve, increases in the production of one good … The optimal point on a production possibilities curve is achieved where. This is a reflection of, If someone produced too little of a good, this would suggest that. Shifts the individual's budget line rightward because she can now purchase more of both products. C. are generalizations based on hypotheses tested and supported with observed facts. A) an increasing opportunity cost between the two goods. If his tastes change in favor of Coke and against popcorn, the budget line will, Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of which is on the horizontal axis) is $3. 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