Increasing Opportunity Costs Suggest That

question 65

Multiple Choice

Increasing opportunity costs suggest that:

• A) Resources are not perfectly shiftable between the production of two goods
• B) Resources are fully shiftable between the production of two goods
• C) A country's production possibilities curve appears as a straight line
• D) A country's production possibilities curve is bowed inward (i.e.,convex) in appearance

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Definitions:

Buyers

Individuals or entities that purchase goods or services from sellers in exchange for money or other valuable considerations.

Sellers

Individuals or entities that offer goods or services for sale to potential buyers.

Deadweight Losses

Economic inefficiencies that occur when the market equilibrium is not achieved, often due to external interference such as taxes or monopolies, resulting in a loss of total surplus.

Distort Incentives

When external factors or policies alter the natural motivations that influence individual or business decisions, potentially leading to inefficient outcomes.