If an economy is characterized by increasing opportunity costs, increasing the production of steel by constant amounts results in a constant rate of decrease in the production of autos.

Question

Quizplus · Accepted Answer

In an economy with increasing opportunity costs, increasing the production of steel by constant amounts would result in an increasing rate of decrease in the production of autos, not a constant rate, because resources are not equally efficient in all uses.

If an Economy Is Characterized by Increasing Opportunity Costs, Increasing