Author Question: The term or phrase most likely to indicate a normative statement is A) ceteris paribus. B) ... (Read 105 times)

WWatsford · **on:** Jun 29, 2018

The term or phrase most likely to indicate a normative statement is

A) ceteris paribus.
B) factual. or what is statement.
C) holding other things constant.
D) should or ought to.

Question 2

Explain the concept of the law of increasing additional cost.

What will be an ideal response?

mathjasmine · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

The law of increasing relative cost is the fact that the opportunity cost of additional units of a good increases as society tries to produce more of that good. This accounts for the bowed-out shape of the production possibilities curve.