The Principle of Increasing Opportunity Costs states that:
A. opportunity costs increase when too little is produced.
B. when increasing production, resources with the lowest opportunity costs should be used first.
C. when increasing production, resources with the lowest opportunity costs should be used last.
D. productive people do the hardest tasks first.
Answer: B
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The more money an average household spends on one specific type of good or service per month, the
A) smaller the relative importance of that item in the CPI market basket. B) larger the relative importance of that item in the CPI market basket. C) costlier it will be to conduct the Consumer Expenditure Survey. D) less significant an increase in the price of that good or service will be for the household. E) more frequently its price is checked when calculating the CPI.
How is the concept of present value useful in deciding whether or not to undertake an investment project?
What will be an ideal response?