As More of a Good, Such as Television Sets, Is

question 138

Multiple Choice

As more of a good, such as television sets, is produced, the opportunity costs of producing it increases. This most likely occurs because

• A) as more of a good is produced, the inputs used to produce that good will increase in price.
• B) consumers would be willing to pay higher prices for the good as more of the good is produced.
• C) resources are not equally well suited to producing all goods, and as more of a good is produced, it is necessary to use resources less well suited to the production of that good.
• D) as more of a good is produced, the quality of that good declines, and therefore the costs of production increase.

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Definitions:

Consumption

The process by which goods and services are utilized by consumers, leading to a decrease in their quantity or quality, reflecting the end phase of economic activity.

Disposable Income

Post-income tax financial reserves set aside for households to utilize in spending and saving.

Credit Availability

The simplicity of securing loans and different types of credit for individuals and companies from finance companies.

Consumer Durable

Long-lasting goods purchased by consumers that are not consumed quickly and provide utility over time, such as appliances and vehicles.