Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The units of good Y that could have been produced instead
B
The total resources available to produce both goods
C
The money spent on producing good X
D
The amount of time taken to produce good Y
Understanding the Answer
Let's break down why this is correct
Answer
When a country decides to produce more of good X, it must use resources that could have been used for something else. This means that the country is giving up the chance to produce other goods, which is known as the opportunity cost. For example, if the country shifts resources from making bread to making more cars, the opportunity cost is the amount of bread that will not be produced because those resources are now focused on cars. Therefore, the opportunity cost reflects the value of the next best alternative that is sacrificed. Understanding opportunity cost helps countries make better choices about how to allocate their resources effectively.
Detailed Explanation
When a country makes more of good X, it has to use resources that could have made good Y. Other options are incorrect because This answer confuses total resources with what is given up; This answer focuses on money spent, but opportunity cost is about what you miss out on, like good Y.
Key Concepts
Opportunity Cost
Production Possibilities Curve
Resource Allocation
Topic
Analyzing Opportunity Costs
Difficulty
easy level question
Cognitive Level
understand
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