When an economy is operating under conditions of full employment, the production of more of commodity A will mean the production of less of commodity B because
A) of the law of increasing opportunity costs.
B) economic wants are insatiable.
C) resources are limited.
D) resources are specialized and only imperfectly substitutable.

Question

Quizplus · Accepted Answer

When an economy is at full employment, all resources are being used efficiently. Therefore, to produce more of one commodity, resources must be reallocated from the production of another commodity, reflecting the limited nature of resources.

When an Economy Is Operating Under Conditions of Full Employment