Because Resources Are Not Perfectly Adaptable to the Production of Both

question 134

Multiple Choice

Because resources are not perfectly adaptable to the production of both good A and good B,

• A)the opportunity cost of A increases as production of A increases
• B)the opportunity cost of A decreases as production of A increases
• C)it is impossible for the economy to produce both A and B
• D)the opportunity cost of A is constant
• E)the opportunity cost of B is constant

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Definitions:

Common Stock

Common Stock represents ownership shares in a corporation, providing voting rights and entitling the shareholder to a share of the company's profits through dividends.

Stock Options

Financial instruments granting the holder the right to buy or sell stock at a specified price before a certain date.

Net Income

Net income is the total profit of a company after subtracting all expenses, taxes, and costs from its total revenue.