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.

Understand the concept of a budget line and how it represents consumer choices within income constraints.

Identify and distinguish between the different factors of production: land, labor, capital, and entrepreneurship.

Demonstrate an understanding of the opportunity cost and trade-offs involved in economic decisions.

Explain the process and importance of investment in capital resources for economic growth.