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.

---

Definitions:

Operational Decision

Decisions made to manage day-to-day activities of an organization, affecting its efficiency and effectiveness.

Supply Chain

The network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Transportation

Refers to the movement of goods or people from one location to another, typically involving vehicles such as trucks, ships, and planes.

Dabbawalas

A lunchbox delivery and return system in Mumbai, India, known for its low cost and high reliability.