In the 1980s, the Federal Government Undertook a Major Build-Up

Multiple Choice

In the 1980s, the federal government undertook a major build-up of the military sector, leading to reports that prices charged by military contractors were spiraling upward. According to production possibilities analysis, this result is not surprising due to:

A) the law of increasing opportunity cost.
B) economic efficiency.
C) technical efficiency.
D) resource underutilization.