The law of increasing relative cost states that
A) producing additional units of one good results in increasing amounts of lost output of the other.
B) producing additional units of one good results in proportionately smaller reductions in output of the other.
C) the economy will be producing on its production possibilities curve.
D) the production possibilities curve will be a straight line.
Correct Answer:
Verified
Q40: A point outside a production possibilities curve
Q41: The fact that a country's production possibilities
Q42: A straight-line PPC would indicate that there
Q43: Figure 2-4 Q44: Figure 2-4 Q46: Increasing opportunity cost implies that Q47: A production possibilities curve bowed outward is Q48: Allocative efficiency is achieved when Q49: Consider the following production possibilities table for Q50: A straight-line production possibilities curve would indicate
A)producing additional units
A)a point beyond
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