If There Is Increasing Opportunity Cost,then When Moving Downward on a Production

question 276

Multiple Choice

If there is increasing opportunity cost,then when moving downward on a production possibilities frontier,the opportunity cost of the good on the horizontal axis ________ as more of the good is produced.

• A) increases and the PPF gets steeper
• B) increases and the PPF gets flatter
• C) decreases and the PPF gets steeper
• D) decreases and the PPF gets flatter
• E) does not change and the PPF gets steeper

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Definitions:

Dividend Decision

The process by which a company's board of directors decides the amount of profits to be distributed to shareholders and the amount to be retained.

Signaling Effect

The signaling effect is a theory in finance suggesting that the actions of a company, such as dividend announcements or share buybacks, send signals to the market about its future prospects.

Dividend Policy

A company's approach to distributing profits to its shareholders, determining how much to pay out in dividends and how often.

Investor Confidence

The degree of faith that investors have in the stability and profitability of the financial markets, influencing their willingness to invest.