If a country decides to increase the production of consumer goods at the cost of capital goods, what does this illustrate about opportunity cost?

When a country chooses to produce more consumer goods, like toys and clothes, while reducing the production of capital goods, such as machinery and tools, it shows the concept of opportunity cost. Opportunity cost is what the country gives up in order to get something else. In this case, the resources that could have been used to make capital goods are now being used for consumer goods. For example, if a factory shifts its focus from making machines to producing more clothing, the opportunity cost is the machines that are not being made. This decision illustrates that increasing one type of production often means sacrificing another, highlighting the trade-offs involved in economic choices.