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As an Economy Increasingly Specialises in Producing One Good, the Opportunity

Question 10

Multiple Choice

As an economy increasingly specialises in producing one good, the opportunity cost of that good increases. The opportunity cost increases because


A) as more of a good is produced the profit from its production must rise.
B) not all goods are equally valuable.
C) resources are not equally productive in all activities.
D) what must be paid to resources increases.
E) human wants are virtually unlimited.

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