Which of the following statements is correct?
i.As the economy grows,the opportunity costs of economic growth decrease.
ii.Economic growth has no opportunity cost.
iii.The opportunity cost of economic growth is current consumption forgone.
A)i only
B)ii only
C)iii only
D)i and ii
E)i and iii

Question

Quizplus · Accepted Answer

The opportunity cost of economic growth is the current consumption forgone, as resources are allocated towards production rather than consumption. Option i is incorrect because as the economy grows, the opportunity cost of economic growth actually increases due to the scarcity of resources. Option ii is incorrect because every economic decision necessarily involves some opportunity cost.

Which of the Following Statements Is Correct