When resources are used efficiently, a country can produce more of one good, ceteris paribus, only by:
A)printing more money.
B)charging a lower price for output.
C)charging a higher price for output.
D)producing less of another good.
E)reducing the amounts of inputs.

Question

Quizplus · Accepted Answer

This is the concept of opportunity cost. In order to produce more of one good, resources must be shifted away from producing another good. This means producing less of the other good. Therefore, the answer is D.

When Resources Are Used Efficiently, a Country Can Produce More