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Increasing marginal opportunity cost implies that
that rising opportunity costs makes it inefficient to produce beyond a certain quantity
the more resources already devoted to any activity, the benefits from allocating yet more resources to that activity decreases by progressively larger amounts
the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.
the law of scarcity
Which of these statements best represents the law of demand?
When income levels increase, buyers responds by purchasing more of most goods.
When buyers demand for a good increases, the price of the good will increase.
When the price of a good falls, buyers respond by purchasing more of the good.
When buyers tastes for a good increase, they purchase more of the good.
When the consumer price index rises, the typical family
has to spend more dollars to maintain the same standard of living.
can offset the effects of rising prices by saving more.
can spend fewer dollars to maintain the same standard of living.
finds that its standard of living is not affected.
