The Law of Increasing Opportunity Cost Explains Why _____

question 205

Multiple Choice

The law of increasing opportunity cost explains why _____

• A) opportunity cost is constant along the production possibilities frontier.
• B) the production possibilities frontier is downward sloping.
• C) the production possibilities frontier is curved.
• D) efficient points lie along the production possibilities frontier.
• E) technology remains constant along the production possibilities frontier.

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Definitions:

Supply

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

Quantity Demanded

The aggregate quantity of a product or service that customers are ready and able to buy at a specific price point within a certain timeframe.

Elastic

Describes a situation where the quantity demanded or supplied of a good changes significantly in response to price changes.

Demand

The willingness and ability of consumers to purchase goods or services at various price levels.