The economy's factors of production are not equally suitable for producing different types of goods.This principle generates:
A)economic growth.
B)technical efficiency.
C)underuse of resources.
D)the law of increasing opportunity cost.

Question

Quizplus · Accepted Answer

The principle mentioned in the question refers to the law of increasing opportunity cost, which states that as more of one good is produced, the opportunity cost of producing an additional unit of that good increases relative to the other good(s), due to the differing suitability of the factors of production. This leads to a tradeoff in which society must decide how much of each good to produce, as producing more of one good requires sacrificing the production of another.

The Economy's Factors of Production Are Not Equally Suitable for Producing