Table 2-1 Production Choices for Tomaso's Trattoria

question 82

Multiple Choice

Table 2-1
Production choices for Tomaso's Trattoria

-Refer to Table 2-1.Assume Tomaso's Trattoria only produces pizzas and calzones.Tomaso faces ________ opportunity costs in the production of pizzas and calzones.

• A)increasing
• B)decreasing
• C)constant
• D)negative

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Definitions:

Technological Advances

Innovations and improvements in technology that increase production efficiency, create new products, or enhance quality of life.

Persistently Rising Employment

Refers to a continuous increase in the number of employed individuals over a period, indicating economic growth and stability.

Backward-Sloping Labor Supply

A situation where higher wages lead to a decrease in the quantity of labor supplied because the income effect outweighs the substitution effect.

Labor-Augmenting

Technological improvements or changes that increase the efficiency or productivity of labor.