Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
More resources are needed to produce the same amount of goods.
B
Resources must be reallocated from one good to another, resulting in decreased production of the other good.
C
There are no limits to production, allowing for increased output of all goods.
D
The market price will remain constant regardless of production changes.
Understanding the Answer
Let's break down why this is correct
Answer
In the context of production possibilities, a trade-off means that when you decide to produce more of one good, you must give up some amount of another good. This happens because resources, like time, money, and materials, are limited. For example, if a factory can produce either 100 toys or 50 bicycles, choosing to make 10 more toys might mean producing 5 fewer bicycles. This shows that increasing one product's production comes at the cost of reducing another. Understanding trade-offs helps us make better decisions about how to use our resources wisely.
Detailed Explanation
When you want to make more of one thing, you have to take resources away from something else. Other options are incorrect because This answer suggests you need more resources to keep making the same amount; This option says there are no limits, which isn't true.
Key Concepts
Trade-offs
Topic
Production Possibilities and Price Effects
Difficulty
easy level question
Cognitive Level
understand
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