When an economy's limited resources are moved into the production ...

[Capo]

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

[dajones82]

Answer to Question 1

B

Answer to Question 2

a

[Capo]

Excellent

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