Which of the following statements is correct?
i.As the economy grows,the opportunity costs of economic growth decrease.
ii.Economic growth has no opportunity cost.
iii.The opportunity cost of economic growth is current consumption forgone.
A) i only
B) ii only
C) iii only
D) i and iii
E) i and ii

Question

Quizplus · Accepted Answer

According to the concept of opportunity cost, in order to achieve economic growth, a society must produce more goods and services by diverting resources from producing other goods and services. This diversion causes an opportunity cost, which is the current consumption forgone. Therefore, statement iii is correct while statement i and ii are incorrect.

Which of the Following Statements Is Correct