As Resources Are Not Perfectly Adaptable to the Production of Both

question 144

Multiple Choice

As resources are not perfectly adaptable to the production of both Good A and Good B,_____.

• A)the opportunity cost of Good A increases as the production of Good A increases.
• B)the opportunity cost of Good A decreases as the production of Good A increases.
• C)it is impossible for the economy to produce both Good A and Good B.
• D)the opportunity cost of Good A is constant.
• E)the opportunity cost of Good B is constant.

---

Definitions:

Medicare Tax

A federal tax that funds the Medicare program, deducted from the earnings of employees and matched by employers.

Unemployment Taxes

Taxes paid by employers to fund unemployment insurance programs, aiding workers who have lost their jobs.

Salaries Payable

An account containing the total amount of salary expense that has been incurred by a company but has not yet been paid out to employees.

Employer Payroll Tax Expense

Taxes paid by employers based on the salary and wages of employees, including social security and Medicare taxes in the United States, among others.