Which of the Following Is an Illustration of the Law

question 10

Multiple Choice

Which of the following is an illustration of the law of increasing opportunity costs?

• A) As more cars are produced,the opportunity cost of each additional car is greater than for the preceding unit.
• B) As more cars are produced,the opportunity cost of each additional car is less than for the preceding unit.
• C) As more cars are produced,the opportunity cost of each additional car is the same as for the preceding unit.
• D) People pay lower prices for cars the higher the costs of producing cars.

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Definitions:

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another, often measured by GDP.

Productivity Growth

An increase in the efficiency of production, often measured as the ratio of output to inputs over a specified period.

U.S. Economy Sector

It refers to the major segments of the U.S. economy such as agriculture, manufacturing, and services that contribute to the country's GDP.

20th Century

The period from January 1, 1901, to December 31, 2000, known for vast social, political, and technological changes globally.