Question
What economic concept must be at work when there is movement by a country along its production possibility curve?
A economies of scale
B equilibrium price
C maximum profit
D opportunity cost
A economies of scale
B equilibrium price
C maximum profit
D opportunity cost
Answers
GPT-4o mini
The correct answer is **D opportunity cost**.
When a country moves along its production possibility curve (PPC), it means that it is reallocating resources to produce more of one good at the expense of another. This trade-off reflects the opportunity cost, which is the value of the next best alternative that is foregone when resources are used for a specific purpose.
When a country moves along its production possibility curve (PPC), it means that it is reallocating resources to produce more of one good at the expense of another. This trade-off reflects the opportunity cost, which is the value of the next best alternative that is foregone when resources are used for a specific purpose.