Increasing marginal opportunity cost implies that
A) the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.
B) the more resources already devoted to any activity, the benefits from allocating yet more resources to that activity decreases by progressively larger amounts.
C) that rising opportunity costs makes it inefficient to produce beyond a certain quantity.
D) the law of scarcity.
Answer: A
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A) government spending B) the money supply C) aggregate supply shocks D) tax rates
If the demand for good A is more elastic than the demand for good B, a small decrease in supply in both markets will cause
a. a much greater increase in price for good A than for good B b. a much greater increase in price for good B than for good A c. the price will increase by the same amount in both markets d. only the price of good B will increase e. only the price of good A will increase