Author Question: When an economy's limited resources are moved into the production of one commodity, the production ... (Read 88 times)

Capo · **on:** Jun 30, 2018

When an economy's limited resources are moved into the production of one commodity, the production of a valuable alternative has to be foregone. This most valuable alternative lost is referred to as:
a. the marginal cost.
b. the opportunity cost.
c. the sunk cost.
d. the fixed cost.

Question 2

When a good becomes more expensive, it yields less satisfaction per dollar, so consumers buy less of it and more of other goods. This is called the _____ effect.
a. substitution
b. income
c. replacement
d. augmentation
e. disbursement