Why does the opportunity cost of producing a good rise as more resources are devoted to producing that good?
What will be an ideal response?
The opportunity cost of a good rises as we devote more resources to producing it because some resources are better suited to the production of one good than another. This is known as the law of increasing opportunity cost.
You might also like to view...
The type of unemployment that arises from a decrease in real GDP is called
A) frictional unemployment. B) structural unemployment. C) downturn unemployment. D) non-expansion unemployment. E) cyclical unemployment.
Historical data suggests that a trend toward ________ natural employment ________
A) larger, deficits from the early 1960s to the mid-1980s. B) larger, surpluses form the early 1960s to the mid-1980s. C) smaller, surpluses form the mid-1980s to 1995. D) larger, surpluses from the mid-1980s to 1995.