Question

According to the law of increasing opportunity cost, as a society _________ more and more of a certain good, further production _________ involve ever-greater opportunity costs, so that producing the good is associated with greater and greater _________.

Answer 1

Answer:

produces  

increases

trade-offs

Explanation:

The law of increasing opportunity cost states that when firms decide to make additional units of a certain product by reallocating resources, they do that at a higher opportunity cost than the previous production. The major traceable reason for this is inefficiency in resource reallocation.

This increase in opportunity cost is associated with increasing and increasing trade-off.