What do economists call the idea that because of scarcity, producing more of one good or service means producing less of another good or service?
A)Optimisation
B)Efficiency
C)Trade-off
D)Equity

Question

Quizplus · Accepted Answer

This idea is known as a trade-off. When resources are limited, producing more of one thing requires producing less of something else. This is because resources must be allocated and used efficiently, leading to trade-offs in production. Option A, optimisation, refers to the process of finding the best possible outcome given existing constraints. Option B, efficiency, refers to using resources in the most productive way possible. Option D, equity, refers to the distribution of resources and goods in a fair and just way.

What Do Economists Call the Idea That Because of Scarcity