"The money and resources currently being devoted to the War on Terrorism reduces the quantity of other goods that we are able to supply." This statement most clearly illustrates which of the following?
A) the fallacy of composition.
B) the idea that association is not causation.
C) the concept of opportunity cost.
D) the difference between positive and normative economics.

Question

Quizplus · Accepted Answer

The statement is referring to the concept of opportunity cost, which is the idea that by choosing to devote resources to one thing (in this case, the War on Terrorism), we are giving up the opportunity to devote those resources to other things.

"The Money and Resources Currently Being Devoted to the War