1
QuizMultiple Choice

The Law of Supply — Quiz

Question 1 • Economics

Which best describes the role the availability of resources plays when a company is considering whether to produce a certain good?

Answer
A
Resources play no part in a company’s decision to produce a good.
B
If a resource is difficult to obtain, production costs will be high.
C
If a resource is easy to obtain, production costs will be high.
D
Resources can always be obtained, no matter what the cost.

Explanation

A company needs resources such as materials, labor, and equipment to make a good. If an important resource is difficult to obtain, the company may have to spend more to acquire it, increasing production costs. So the best choice is “If a resource is difficult to obtain, production costs will be high.”

AI-written and checked against the verified answer.

Next