When the Opportunity Cost of Producing Laptops Increases as More

question 20

Multiple Choice

When the opportunity cost of producing laptops increases as more laptops are produced,then:

• A)no more laptops will be produced.
• B)resources are equally suited to the production of laptops and to other goods.
• C)the production possibilities frontier is a straight line.
• D)the production possibilities frontier becomes positively sloped.
• E)the law of increasing costs is present.

---

Definitions:

Consumer Welfare

The overall satisfaction, benefit, or utility received by consumers through the consumption of goods and services.

Gross Domestic Product (GDP)

The sum of the market or financial value of all the finished products and services created within the boundaries of a country over a certain period.

Net Taxes

The amount of taxes paid to the government minus any transfers or subsidies received from the government.

Indirect Business Taxes

Taxes levied on goods and services rather than on income or profits, affecting the pricing of these items.