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Central Problems & the PPC · Question 64 of 87

Question 64

MediumOriginal question

Why does the opportunity cost of a good usually rise as more of it is produced?

Options for question 64

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. The first resources moved into a good are those best suited to it; later ones are less suited.

  2. Less suited resources produce less of the new good for each unit of the old good they stop producing, so the cost rises.

Concept
Why opportunity cost rises
Typical time
70 s
Your time
—
The rule this testsOpportunity cost and MRT
Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.