Assuming That Resources Are Specialized, the Opportunity Cost of an Item

question 140

Multiple Choice

Assuming that resources are specialized, the opportunity cost of an item increases as the production of it rises.This implies that firms will produce more as

• A)the price increases.
• B)the price decreases.
• C)the opportunity cost is greater than the price.
• D)government asks firms to produce more.
• E)the income of buyers increases.

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Definitions:

Safe Deposit Box

A safe deposit box is a secure container, usually held within a bank, where individuals can store valuable items such as documents, jewelry, and securities.

Expected Pay

The anticipated or forecasted amount of money one expects to receive for work performed or investment.

Probability

A measure of the likelihood that a specific event will occur, expressed as a number between 0 and 1.

Hourly Rate

A rate of payment for one hour of work, often used to calculate wages for part-time or contract employees.