When resources are limited, producing more of one good means producing less of something else. The opportunity cost of producing more of a good is the value given up by not producing the secondbest choice.

Question

When resources are limited, producing more of one good means producing less of something else. The opportunity cost of producing more of a good is the value given up by not producing the second­best choice.

Quizplus · Accepted Answer

This statement accurately describes the concept of opportunity cost in economics. Resources are limited and every choice has an opportunity cost, meaning that producing more of one good necessarily means producing less of something else. The opportunity cost is the value of the next best alternative that is forgone.

When Resources Are Limited, Producing More of One Good Means