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:

Carryforward

A tax provision allowing current losses or credits to be used in future tax years to offset potential gains or income.

Net Income

The amount of earnings left after all expenses, taxes, and costs have been subtracted from total revenue.

FMV

Fair Market Value, an estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.

Tax Depreciation

The deduction of a portion of the cost of a business asset from taxable income over the asset's useful life, as allowed by tax laws.