Author Question: As an economy increasingly specializes in producing one good, the opportunity cost of that good ... (Read 84 times)

Chloeellawright · **on:** Jun 29, 2018

As an economy increasingly specializes in producing one good, the opportunity cost of that good increases. The opportunity cost increases because

A) not all goods are equally valuable.
B) as more of a good is produced, the profit from its production must rise.
C) resources are not equally productive in all activities.
D) what must be paid to resources increases.
E) human wants are virtually unlimited.

Question 2

If the quantity of real GDP demanded is greater than the quantity of real GDP supplied, then

A) the economy must be producing at potential GDP.
B) aggregate demand changes to restore equilibrium.
C) the price level falls to restore the macroeconomic equilibrium.
D) the price level rises and firms increase production.
E) the price level falls and firms decrease production.