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MMLU / The law of increasing costs

Problem

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question

The law of increasing costs

choices

  1. does not apply to guns and butter.
  2. is the result of resources not being perfectly adaptable between the production of two goods.
  3. implies that prices will rise when the costs of making a good rise.
  4. causes the production possibilities frontier to be a straight line.

subject

high_school_microeconomics

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Source and history

Official source

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