Solved

If the Opportunity Cost of Production Rises as More of a Good

Question 14

Multiple Choice

If the opportunity cost of production rises as more of a good is produced,


A) the terms of trade will be independent of opportunity costs
B) the production possibilities curve will be a straight line
C) a country will specialize in producing only those goods in which it has a comparative advantage
D) a country should produce any good in which it has an absolute advantage
E) a country may not specialize completely in the goods in which it has comparative advantage

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions