The law of increasing opportunity costs is a result of the fact that:
A) the value of the dollar has declined over time.
B) wage rates rise as the economy reaches full employment.
C) consumers tend to value a good more when they don't have much of it.
D) resources are not equally productive in all output categories.

Question

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as the production of one good increases, the opportunity cost of producing an additional unit of that good increases as well. This is because resources are not equally productive in all output categories, meaning that some resources are better suited for producing one good over another. As more resources are allocated to producing a good, those resources become less suited for producing other goods, causing the opportunity cost to increase.

The Law of Increasing Opportunity Costs Is a Result of the Fact