The Law of Increasing Opportunity Cost Is Based on the Idea

question 81

Multiple Choice

The law of increasing opportunity cost is based on the idea that

• A) wages tend to increase with the level of employment
• B) interest rates tend to rise with increasing inflation
• C) labor costs for a typical firm are a large and growing proportion of total cost
• D) most resources are better suited to producing some goods than others
• E) the less of something we produce,the greater is the opportunity cost of producing still more

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Definitions:

Grades

A system of evaluating or ranking academic performance, typically represented by letters or numbers.

Anticipate Consequences

The act of predicting and considering potential outcomes of actions or decisions.

Problem Solving

Moving from the point at which we initially realize that we have a difficulty which requires our attention to that point where we regard the difficulty as being sufficiently resolved for the current time and circumstances.

Expectations

Beliefs or anticipations about the way something should be or how future events will unfold.