The economy's factors of production are not equally suitable for producing different types of goods. This principle generates:
A) economic growth.
B) technical efficiency.
C) resource underutilization.
D) the law of increasing opportunity cost.
Ans: D) the law of increasing opportunity cost.
Economics
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In the long run, monopolistically competitive firms will not earn economic profits because
A) average total cost will shift up to meet the demand curve. B) input prices will be bid up. C) production will not be at minimum average cost. D) new firms will enter the industry.
Economics
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
Economics