When Does the Law of Increasing Opportunity Costs Apply

question 92

Multiple Choice

When does the law of increasing opportunity costs apply?

• A) when management is disorganized and production is inefficient
• B) when resources are free
• C) when resources are not equally adaptive among potential productive uses
• D) when market forces do not lead to equality between price and opportunity cost

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders from its profit.

Equity Method

An accounting technique used to record investments in other companies by recognizing income and changes in value in proportion to ownership.

Wendell's Share

An unspecified term that may refer to the portion or percentage of ownership, profits, or assets attributed to an individual named Wendell.

Net Income Earned

The total earnings of a company after all expenses and taxes have been deducted from total revenues, essentially the same as Net Income but emphasizing the acquisition aspect.