In order for Ireland to grow more potatoes, wool production must decrease. This situation is an example of

Question

Quizplus · Accepted Answer

This situation presents a tradeoff, as there is a necessary sacrifice in one area (wool production) in order to improve another (potato production). It is not a zero opportunity cost situation, as there is a real cost in terms of lost production of wool. There is also no free lunch, as any increase in potato production involves a sacrifice in wool production. The scenario may or may not involve producing beyond the PPF, but this is not explicitly stated. Finally, there is no obvious opportunity benefit in this situation.

In Order for Ireland to Grow More Potatoes, Wool Production