The Opportunity Cost of Producing One More Unit of a Good

question 49

Multiple Choice

The opportunity cost of producing one more unit of a good is calculated by dividing the

• A) increase in the quantity of that good by the decrease in the quantity of other good.
• B) total quantity of that good by the total quantity of other good.
• C) decrease in the quantity of the other good by the increase in the quantity of the good whose opportunity cost we're calculating.
• D) total quantity of the other good by the total quantity of the good whose opportunity cost we're calculating.
• E) price of the good whose opportunity cost we are calculating by the number of units of the other good that are forgone.

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Definitions:

National Government

The organization responsible for governing a nation, typically composed of executive, legislative, and judicial branches.

Barron v. Baltimore

An 1833 United States Supreme Court case that held the Bill of Rights restricted only the federal government and not state governments, underscoring the federalism principle.

Nationalization

The process of transforming private assets into public assets by bringing them under the public ownership of a national government.

Takings Clause

Refers to a provision in the Fifth Amendment of the U.S. Constitution that prohibits the government from taking private property for public use without just compensation.