The Fact of Increasing Opportunity Cost When Moving on the PPF

question 32

Multiple Choice

The fact of increasing opportunity cost when moving on the PPF means that

• A) to increase the production of one product requires larger and larger sacrifices of the other good.
• B) to decrease the production of one product requires smaller and smaller sacrifices of the other good.
• C) to increase the production of one product requires smaller and smaller sacrifices of the other good.
• D) when the government forces a movement from one point on the PPF to another point, no production is lost.
• E) the PPF will be a negatively sloped straight line.

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Definitions:

Shareholders

Shareholders are individuals or entities that own shares of stock in a corporation, giving them partial ownership of the company.

Merger

The combination of two or more companies into a single entity, typically to achieve synergistic effects.

Acquisition

The process by which a company buys most or all of the target company's ownership stakes to assume control.

Stockholders

Stockholders, or shareholders, are individuals or entities that own one or more shares of stock in a public or private corporation, granting them equity ownership.