The law of increasing opportunity costs:
A. applies to land-intensive commodities but not to labor-intensive or capital-intensive
commodities.
B. results in straight-line production possibilities curves rather than curves that are bowed
outward from the origin.
C. refutes the principle of comparative advantage.
D. may limit the extent to which a nation specializes in producing a particular product.
D. may limit the extent to which a nation specializes in producing a particular product.
You might also like to view...
A monopsony restricts the quantity of a factor demanded to force down the price of the factor and increase profits
Indicate whether the statement is true or false
Suppose the demand curve for a good is downward sloping and the supply curve is upward sloping. At the market equilibrium, if demand is more elastic than supply in absolute value, a $1 specific tax will
A) raise the price to consumers by 50 cents. B) raise the price to consumers by less than 50 cents. C) raise the price to consumers by more than 50 cents. D) raise the price to consumers by $1.