A HEADLINE article in the text indicates that North Korea is expanding its missile programs,and at the same time it is running out of food.If North Korea is on its production possibilities curve and reduces food production so that it can increase the size of its military,this is an example of:

Question

Quizplus · Accepted Answer

This is an example of opportunity costs, where North Korea is choosing to increase the size of its military by reducing food production, which comes at the cost of sacrificing the production of food. This decision involves choosing between different alternatives, and opportunity costs represent the value of the next best alternative that must be given up in order to pursue the chosen option.

A HEADLINE Article in the Text Indicates That North Korea