Law of Increasing Opportunity Costs

Question 1

Law of Increasing Opportunity Costs

Answer 1

states that whatever decision you make, there is a sacrifice

Question 2

relationship between two options is

Answer 2

inversely proportionate

Question 3

remember this…

Answer 3

opportunity cost actually increases as you reallocate resources that were more efficient in producing the good that was sacrificed

Question 4

note

Answer 4

• a business replaces peach orchards with cattle farms
• the PPF curve bowed outward
• decrease production