Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, the law of increasing opportunity costs applies to

A. Both brushes and combs.
B. Brushes but not combs.
C. Combs but not brushes.
D. Neither brushes nor combs.

Answer: A

Economics

You might also like to view...

Which of the following would cause an increase in aggregate demand (AD)?

A) an increase in interest rates B) a decrease in taxes C) a decrease in price levels D) a rise in the foreign exchange value of the dollar

Economics

As long as two people have different opportunity costs, each can gain from trade with the other, since trade allows each person to obtain a good at a price lower than his or her opportunity cost

a. True b. False Indicate whether the statement is true or false

Economics