The Concept of Opportunity Cost in a Fully Employed Economy

question 184

Multiple Choice

The concept of opportunity cost in a fully employed economy with technology and resources held constant tells us that

• A)expansion of output in one industry means expansion cannot occur in another industry.
• B)expansion of output in one industry means output in another industry must contract.
• C)output cannot be increased in any industry.
• D)output of all industries must contract until more resources are found.

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Definitions:

Stimulus Generalization

The process by which a response originally elicited by a specific stimulus is elicited by similar stimuli.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of no exposure to the conditioned stimulus.

Instinctive Drift

The phenomenon whereby an animal's learned behavior reverts to its natural instincts over time, often interfering with conditioned response training.

Stimulus Discrimination

The learned ability to differentiate between similar stimuli based on their associations with different outcomes.