A News Wire article in the text indicates that North Korea is expanding its missile programs. Assume North Korea is currently on its production possibilities curve. If the increase in missile production results in a decrease in food production, this is an example of:

Question

Business

Quinton Clarke

6 February, 02:24

A News Wire article in the text indicates that North Korea is expanding its missile programs. Assume North Korea is currently on its production possibilities curve. If the increase in missile production results in a decrease in food production, this is an example of:

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Answers (1)

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Kristina Murphy · Answer 1

opportunity cost

Explanation:

Based on the scenario being described within the question it can be said that this situation is an example of an opportunity cost. This term refers to the cost that you incure from choosing one opportunity over the other options available. Such as in this case, North Korea is giving up increased food production by choosing increased missile production. Therefore, increased food production is it's opportunity cost.