The Law of Increasing Opportunity Costs Is Reflected in a Production

question 127

Multiple Choice

The law of increasing opportunity costs is reflected in a production possibilities curve which is:

• A)an upward sloping straight line.
• B)a downward sloping straight line.
• C)concave to the origin.
• D)convex to the origin.

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Definitions:

Tactical Decisions

Short-term choices made to achieve specific objectives that are part of a larger strategic plan.

Heuristics

Shortcuts or “rules of thumb” that allow us to make judgments and decisions quickly and efficiently.

Rules Of Thumb

Simple, practical guidelines or principles derived from experience and used to make decisions or solve problems quickly.

Randomness Error

The tendency for people to believe they can predict the outcome of chance events based on false information or superstition.