The Law of Increasing Opportunity Costs Exists Because

question 233

Multiple Choice

The law of increasing opportunity costs exists because:

• A)resources are not equally efficient in producing various goods.
• B)the value of the dollar has diminished historically because of persistent inflation.
• C)wage rates invariably rise as the economy approaches full employment.
• D)consumers tend to value any good more highly when they have little of it.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to buy at a given price during a specified time period.

Quantity Demanded

The quantity of a product or service that buyers are ready and capable of buying at a certain price.

Complements

Items or services that complement each other in such a way that a rise in demand for one results in a rise in demand for its counterpart.

Demand Curve

A graph that represents the relationship between the price of a good or service and the quantity demanded by consumers.