Increasing Marginal Opportunity Cost Implies That

question 291

Multiple Choice

Increasing marginal opportunity cost implies that

• A)the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.
• B)the more resources already devoted to any activity, the benefits from allocating yet more resources to that activity decreases by progressively larger amounts.
• C)rising opportunity costs make it inefficient to produce beyond a certain quantity.
• D)the law of scarcity applies.

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Definitions:

Bonds Issuance

The process of offering bonds to investors as a means of raising capital for the issuer.

Face Amount

The nominal or dollar value stated on a financial instrument or security, such as the original amount on a bond or insurance policy.

Bond Redemption

The process of repaying the principal amount of a bond at its maturity date.

Carrying Value

The book value of an asset on a company's balance sheet, calculated as the asset’s original cost minus accumulated depreciation and impairment charges.