Production Possibilities (Alternatives) Refer to the Above Table

question 136

Multiple Choice

Production possibilities (alternatives) Refer to the above table.For these data the law of increasing opportunity costs is reflected in the fact that:

• A)the amount of consumer goods which must be sacrificed to get more capital goods diminishes beyond a point.
• B)larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods.
• C)the production possibilities data would graph as a straight downsloping line.
• D)the economy's resources are presumed not to be scarce.

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Definitions:

Special Provisions

Specific clauses or terms added to agreements or contracts that tailor requirements or conditions to particular circumstances.

Consumption Tax

A consumption tax is a tax on the purchase of goods or services, levied at the point of sale, aimed at reducing consumption and raising revenues for governments.

Incentive

A factor, either monetary or non-monetary, that motivates individuals or entities to behave in a certain way.

Tax Evasion

The illegal practice of not paying taxes by individuals or businesses through various means, including underreporting income or inflating deductions.