As an Economy Increasingly Specializes in Producing One Good,the Opportunity

question 87

Multiple Choice

As an economy increasingly specializes in producing one good,the opportunity cost of that good increases.The opportunity cost increases because

• A) resources are not equally productive in all activities.
• B) what must be paid to resources increases.
• C) human wants are virtually unlimited.
• D) not all goods are equally valuable.
• E) as more of a good is produced, the profit from its production must rise.

---

Definitions:

Cyclical Unemployment

Unemployment that rises during economic downturns and falls when the economy improves, linked to business cycles.

Frictional Unemployment

Unemployment that occurs when people are between jobs or are entering the labor market for the first time.

Discouraged Workers

Individuals who are not actively seeking work because they believe no jobs are available for them or there are no jobs for which they would qualify.

Unemployment Rate

The rate of unemployment among people actively looking for work in the labor force.