Answered

Which of the following states that opportunity costs will increase as resources that are better suited toward the production of one good are allocated toward another?

A. Law of increasing opportunity costs
B. Say's law
C. Law of demand and law of supply
D. Adam Smith's lectures on jurisprudence



Answer :

GinnyAnswer

Final answer:

The law of increasing opportunity cost explains how allocating resources to produce one good over another leads to higher opportunity costs.


Explanation:

The law of increasing opportunity cost states that as the economy produces more of one good along the production possibilities curve, the opportunity cost of producing additional units of that good will rise.

This is due to the fact that resources have comparative advantages in producing specific goods, and allocating them to the production of other goods leads to higher opportunity costs.

For example, as a country shifts resources from producing food to producing electronics, the opportunity cost of producing more electronics increases.


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