Question 36
POST_UTME_AFE_BABALOLA_UNIVERSITY
•
2018
•
ECONOMICS
•
objective
The concept of opportunity \cost is closely related to the law of increa\sing opportunity \cost. Explain how the law of increa\sing opportunity \cost arises from the concept of opportunity \cost.
Answer Options
Correct Answer
A.
The law of increa\sing opportunity \cost arises from the concept of opportunity \cost because as the quantity of a good increases, the opportunity \cost of producing one more unit of that good also increases.
B.
The law of increa\sing opportunity \cost arises from the concept of opportunity \cost because as the quantity of a good decreases, the opportunity \cost of producing one more unit of that good also decreases.
C.
The law of increa\sing opportunity \cost arises from the concept of opportunity \cost because as the quantity of a good remains cons\tant, the opportunity \cost of producing one more unit of that good also remains cons\tant.
D.
The law of increa\sing opportunity \cost arises from the concept of opportunity \cost because as the quantity of a good increases, the opportunity \cost of producing one more unit of that good also decreases.
Correct Answer
A
Correct Option:
The law of increa\sing opportunity \cost arises from the concept of opportunity \cost because as the quantity of a good increases, the opportunity \cost of producing one more unit of that good also increases.
About This Question
This is
Post Utme Afe Babalola University
2018
Economics
Question 36.
It is one of the
objective
questions from the
2018
Post Utme Afe Babalola University
Economics
examination.