If an economy produces only movies and computers,then producing more and more computers will most likely require
A)giving up a decreasing amount of the production of movies.
B)giving up an increasing amount of the production of movies.
C)gaining an increasing amount of the production of movies.
D)gaining a decreasing amount of the production of movies.
E)no change in movie production.

Question

Quizplus · Accepted Answer

This is because of the concept of opportunity cost. The more resources are allocated towards producing computers, the higher the opportunity cost of producing movies becomes. In other words, producing one more computer requires giving up an increasing amount of movie production.

If an Economy Produces Only Movies and Computers,then Producing More