The Law of Increasing Opportunity Cost Results in a Constant

question 157

True/False

The law of increasing opportunity cost results in a constant slope of the production possibilities curve.

---

Definitions:

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Dividend Income Distributions

Payments made by a corporation to its shareholders, typically derived from the company's earnings.

Capital Gains

Capital gains are the profit earned from the sale of an asset, such as stock or real estate, which has increased in value over the holding period.

Rate of Return

The increase or decrease in the value of an investment during a predetermined period, represented as a percentage of the investment's starting cost.