The Law of Increasing Relative Costs, Depicted by the Concavity

question 102

Multiple Choice

The law of increasing relative costs, depicted by the concavity of the production opportunities frontier, is most closely related to the

• A)downward slope of the demand curve.
• B)upward slope of the demand curve.
• C)downward slope of the supply curve.
• D)upward slope of the supply curve.

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Definitions:

Tax Revenue

The income generated by the government through the imposition of taxes on goods, services, and income.

Supply and Demand

Supply and demand is a fundamental economic model describing how prices and quantities of goods and services are determined in a market.

Tax Burden

The impact of a tax on the welfare of an economy, often measured as the portion of total income or expenditure paid in taxes by individuals or businesses.

Sales Volume

The total quantity of products or services sold within a particular period.