As Production of a Good Increases, Opportunity Costs Rise Because

question 55

Multiple Choice

As production of a good increases, opportunity costs rise because:

• A) there will be more inefficiency.
• B) people always prefer having more goods.
• C) of inflationary pressures.
• D) workers are not equally suited to all tasks.

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Definitions:

International Specialization

A method where countries or regions focus on producing goods and services they are most efficient at, to enhance global trade efficiency.

Economies Of Scale

The reduction in cost per unit of goods or services produced as the scale of output increases.

World Price

The international market price of a commodity, determined by global supply and demand conditions.

Per-Unit Tariff

A specific tax levied on each unit of a good imported into a country, as opposed to a percentage of the value.