Exhibit 2-4 Refer to Exhibit 2-4. as More Fax Machines Are Produced

question 51

Multiple Choice

Exhibit 2-4
Refer to Exhibit 2-4. As more fax machines are produced, the opportunity cost of producing them

• A)increases.
• B)decreases.
• C)remains constant.
• D)first decreases and then increases.

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Definitions:

Usury Laws

Regulations that set the maximum interest rate that can be charged on loans, intended to protect consumers from excessively high rates.

Rent Control

Government policies or laws that limit the amount landlords can charge for leasing a home or renewing a lease to protect tenants from sharp increases.

Price Ceiling

A government-imposed limit on the price charged for a product or service, intended to prevent prices from rising to levels considered too high for consumers.

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product, service, or commodity.