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:

Automobiles

Motor vehicles equipped with four wheels and an internal combustion engine or electric motor, designed for passenger transportation.

Quantitative Variable

A variable that can take on numeric values, allowing for measurable differences in magnitude or size.

Overall Shape

A descriptive term referring to the general form or contour of a distribution or data set.

Deviations

Variations or departures from a standard or norm.