The scarcity principle implies that the cost of a higher economic growth rate is

Question

Quizplus · Accepted Answer

The scarcity principle states that resources are limited and therefore, any increase in one area comes at the cost of another. In the case of economic growth, choosing to invest more resources into capital accumulation for future growth means less resources for current consumption. Sacrificing current consumption for future growth is the cost of achieving a higher economic growth rate, making option B the correct answer.

The Scarcity Principle Implies That the Cost of a Higher