ECONOMICS
SCARCITY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
the cost of additional police salaries and benefits.
|
|
|
the cost of training new recruits.
|
|
|
the amount by which taxes will be increased to pay for additional police.
|
|
|
the goods or services that will be given up in order to hire the additional police.
|
Detailed explanation-1: -The law of increasing opportunity cost is the concept that as you continue to increase production of one good, the opportunity cost of producing that next unit increases. This comes about as you reallocate resources to produce one good that was better suited to produce the original good.
Detailed explanation-2: -Answer and Explanation: The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the a. Amount of the other good that must be given up. The opportunity cost in general is the lost gain from the alternative use of resources that are currently in use.
Detailed explanation-3: -This straight frontier line indicates a constant opportunity cost. In reality, however, opportunity cost doesn’t remain constant. As the law says, as you increase the production of one good, the opportunity cost to produce the additional good increases.
Detailed explanation-4: -Principle #2: The cost of something is what you give up to get it. example: College education. The benefits are the job opportunities and personal satisfaction, but there are costs besides “out of pocket” costs like tuition and books.