If an economy is fully utilizing its resources, it can produce more of one product only if it
A) doubles manufacturing of the product.
B) produces less of another product.
C) adds more people to the labor force.
D) reduces the price of the most expensive products.

Question

Quizplus · Accepted Answer

When an economy is fully utilizing its resources, producing more of one product necessitates a reduction in the production of another product due to the scarcity of resources. This is an illustration of the economic principle of opportunity cost.

If an Economy Is Fully Utilizing Its Resources, It Can