If opportunity costs are constant, then the production possibilities curve does not exist. If an economy is operating at a point inside the production possibilities curve, then society s resources are being inefficiently utilized. It is correct to state that a society which is on its production possibilities curve is underutilizing its resources. 17- the law of increasing relative costs is due to scarcity. A person a comparative advantage in an activity whenever she a person has an absolute advantage in the activity.
Division of labor refers to assigning different workers to different tasks.
The demand for a product is the amount that buyers purchase in the market. The law of demand says that the lower the price of a certain good, other things constant the lower the demand for that good. A change in the demand for a good can be caused by if the number of consumers increases. All of the above. If the two goods are substitutes, then an increase in the price of one causes the demand for other to fall.