The cost of two inputs A and B are $100 and $200 per unit per month. A firm can afford to invest $10,000 per month on these inputs. The firm uses 30 units of A. Given a linear isocost such that the entire budget is exhausted, the firm will use 10 units of B

Marginal benefit curves slope

A) upward because of increasing opportunity cost. B) upward, but not because of increasing opportunity cost. C) downward because of increasing opportunity cost. D) downward, but not because of increasing opportunity cost.

Economic growth is important because expansion in the output of goods and services

a. necessarily creates more jobs (more work for people). b. makes it possible for individuals to consume more and achieve higher living standards. c. leads to an increase in the general level of prices. d. generates additional tax revenues for the government.