The Principle of Increasing Opportunity Costs implies that:
A) productive people do the hardest tasks first, while they are fresh.
B) to increase production, you should use the resources with the lowest opportunity cost first.
C) the cost-benefit principle does not apply to increasing productivity.
D) specialization increases productivity.

Question

Quizplus · Accepted Answer

The Principle of Increasing Opportunity Costs states that as more of one good is produced, the opportunity cost of producing that good increases, meaning that resources with a lower opportunity cost should be used first to increase production. Therefore, choice B is the best answer as it directly applies to the principle. Choices A, C, and D do not fully reflect the principle.

The Principle of Increasing Opportunity Costs Implies That