The Proposition That States That as Output Increases for One

question 13

Multiple Choice

The proposition that states that as output increases for one good in an economy that is on its production possibilities curve, the cost of additional units of the good on the horizontal axis will be greater and greater is the:

• A) law of absolute advantage.
• B) law of increasing opportunity cost.
• C) law of policy ineffectiveness.
• D) law of demand.

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Definitions:

Supply of Tablets

Refers to the total quantity of tablet computers that producers are willing and able to sell at a given price level in a given time period.

Equilibrium Price

Equilibrium price is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Welfare Economics

A branch of economics that focuses on the optimal allocation of resources and goods and aims to evaluate the economic well-being of individuals and society.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefits to all participants in the market transaction.