Shifting resources away from producing one good in order to produce another is an example of

Question

Quizplus · Accepted Answer

Shifting resources away from producing one good in order to produce another is an example of opportunity cost. Opportunity cost refers to the cost of an alternative that must be forgone in order to pursue a certain action. In this case, the opportunity cost of producing one good is the production of another good that could have been produced with those same resources. Therefore, the best choice is C. None of the other options are applicable in this scenario.

Shifting Resources Away from Producing One Good in Order to Produce