As More and More Resources Are Dedicated to an Activity

question 163

Multiple Choice

As more and more resources are dedicated to an activity

• A) the benefits will increase proportionately.
• B) the benefits will become smaller and smaller while the costs will rise.
• C) the demand for that activity will increase.
• D) the costs will be offset by the benefits received from the activity.

---

Definitions:

Ask Price

The ask price is the lowest price a seller is willing to accept for a security, commodity, or currency in financial markets.

Face Value

The nominal value printed on a bond, note, or financial document, representing its worth at maturity or when redeemed.

Term Structure

Refers to the relationship between interest rates or bond yields and different terms or maturities.

Interest Rates

The proportion of a total amount of money levied for borrowing it, usually represented as an annual rate.