The idea that because of scarcity, producing more of one good or service means producing less of another good or service refers to the economic concept of:
A)optimisation.
B)efficiency.
C)trade-off.
D)equity.

Question

Quizplus · Accepted Answer

The concept described in the statement is the trade-off. It refers to the fact that resources are limited, and therefore, producing more of one good or service means sacrificing the production of another good or service. This implies an opportunity cost, which is the value of the next best alternative forgone. This concept is fundamental in economics and is related to the idea of scarcity. Therefore, the correct answer is (C) trade-off.

The Idea That Because of Scarcity, Producing More of One