As residents of developing countries increase their chocolate consumption, the increased production of cocoa results in
A) increased opportunity cost of cocoa production.
B) decreased opportunity cost of cocoa production.
C) no change in production of other goods and services.
D) increased production of other goods and services.

Question

Quizplus · Accepted Answer

Increased production of cocoa implies that more resources are being allocated to cocoa production, which means there are fewer resources available for the production of other goods and services. This leads to an increased opportunity cost of producing cocoa, as producing more cocoa comes at the expense of producing less of other goods and services.

As Residents of Developing Countries Increase Their Chocolate Consumption, the Increased