the law of increasing opportunity costs states that | Examsbook

1930

Q: The law of increasing opportunity costs states that

1
along a production possibilites curve, increases in the production of one good make the production of that good easier and easier
2
increases in wages cause increases in the costs of production
3
costs of production increases and then decreases
4
along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good

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Answer : 4. "along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good"
Explanation :
Answer: D) along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good Explanation: Opportunity cost is the cost of what you are giving up to do what you are currently doing. If you can either go to work or go to the beach, and you choose to work, the opportunity cost of working is the value you would have gotten had you gone to the beach. The law of increasing opportunity costs states that as you increase production of one good, the opportunity cost to produce an additional good will increase.

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