The Law of Increasing Opportunity Costs Is Reflected in a Production

question 114

Multiple Choice

The law of increasing opportunity costs is reflected in a production possibilities curve that is

• A) an upsloping straight line.
• B) a downsloping straight line.
• C) bowed out from the origin.
• D) bowed in toward the origin.

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Definitions:

Supply

The total amount of a good or service available for purchase by consumers at a given price level and time.

Equilibrium Quantity

The quantity of a good or service at which the quantity demanded equals the quantity supplied at the market price.

Demand

The consumer's desire and willingness to pay for a product or service at a specific price.

Supply

The total amount of a good or service that is available for purchase at any given price point.