Which of the Following Choices Correctly Illustrates How Changes in Opportunity

question 80

Multiple Choice

Which of the following choices correctly illustrates how changes in opportunity costs affect supply?

• A) A farmer produces corn and wheat. The price of wheat rises; so he shifts his resources towards wheat and the supply of wheat rises.
• B) A fisherman fishes for lobsters and oysters. The price of lobsters rises; so he decides to spend more of his time fishing for oysters because he can make the same amount of money with fewer lobsters.
• C) A textbook for economics becomes cheaper; so more students opt to buy that particular textbook.
• D) Milk and cereal are complementary goods; so when the price of cereal falls, the quantity supplied of milk rises.

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Definitions:

Entrepreneur

An individual who creates, organizes, and manages a business venture, taking on financial risks in the quest for profit.

Monitor

To monitor is to regularly observe and check the progress or quality of something over a period of time, often to detect changes or to ensure that it is in a satisfactory condition.

Leader

An individual who guides or directs a group towards achieving specific goals or objectives, often exhibiting qualities such as vision, initiative, and inspiration.

Formal Organization

An organization structured with established laws, regulations, policies, and procedures to achieve specific objectives, characterized by a defined hierarchy and roles.