The law of increasing opportunity cost implies that
A) producing additional units of one good results in proportionately smaller reductions in output of the other good.
B) producing additional units of one good results in increasing amounts of lost output of the other good.
C) the production possibilities curve will be a straight line.
D) the society will be producing on its production possibilities curve.
Answer: B
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"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of
A) a normative statement. B) a positive statement. C) a decision at the margin. D) OPEC overcoming scarcity.
How do the owners of a partnership relate to the business?
A) The owners and the business are separate legal entities. B) The owners and the business are not separate legal entities. C) The assets of the owners are considered separate from the asset of the business. D) None of these describe the legal relationship of the owners to the business.