What Is the Reason for the Law of Increasing Opportunity

question 79

Multiple Choice

What is the reason for the law of increasing opportunity costs?

• A) There is no reason: it is just one of the laws of economics.
• B) Resources have varying abilities and those with lower opportunity costs of producing a good will be used to produce it before resources with higher opportunity costs produce it.
• C) The price of a good rises as more of it is demanded.
• D) As more of a good is produced,the taxes applied to the production of the good rise.
• E) c and d

---

Definitions:

Percent of Sales Method

A forecasting technique used in financial planning to estimate certain balance sheet and income statement accounts based on projected sales growth.

Bad Debts

Amounts owed to a company that are not expected to be received, often due to customers being unable to pay.

Income Statement

A financial document that reports a company's revenues, expenses, and net income over a specific period.

Percentage of Sales Method

A financial forecasting model that assumes certain expenses and incomes will vary directly with sales.