Which of the following is an illustration of the law of increasing opportunity costs?
A) As more cars are produced, the opportunity cost of each additional car is greater than for the preceding unit.
B) As more cars are produced, the opportunity cost of each additional car is less than for the preceding unit.
C) As more cars are produced, the opportunity cost of each additional car is the same as for the preceding unit.
D) People pay lower prices for cars the higher the costs of producing cars.
A
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When the government runs a budget deficit,
a. interest rates are lower than they would be if the budget were balanced. b. national saving is higher than it would be if the budget were balanced. c. investment is lower than it would be if the budget were balanced. d. All of the above are correct.
The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. The opportunity cost of producing an umbrella in the United Kingdom is ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67
A. 1/3 of a bushel of corn. B. three bushels of corn. C. 3/2 bushels of corn. D. two bushels of corn.