As an Economy Produces More of One of the Goods

question 255

Multiple Choice

As an economy produces more of one of the goods on a bowed out production possibilities frontier,what happens to the opportunity cost of producing the good?

• A) It remains constant.
• B) It decreases.
• C) It increases.
• D) It might increase, decrease, or remain constant depending on how much people value the additional units of the good.
• E) None of these depicts what happens to opportunity cost.

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Definitions:

Negative Feedback System

A regulatory mechanism in which a change in a system's output acts to stabilize or reduce further change.

Positive Feedback System

A system in which a change in some steady state triggers a response that intensifies the changing condition. Compare with negative feedback system.

Set Point

A theory suggesting that the body regulates physiological functions, such as temperature or weight, around a specific homeostasis level or 'set point'.

Stressor

Any biological, chemical, physical, or psychological factor that causes stress to an organism, potentially leading to disease or harm.