a country s choice among the production of


A country s choice among the production of education and nuclear submarines is an issue of opportunity cost.

Explain the issue using a PPF.

Resources are limited whereas wants are infinite and the choices made lead to opportunity costs - explained as the next-best alternative given up. The PPF determines the opportunity cost in the movement along the PPF; enhance in submarines has an opportunity cost of an amount of education as societal resources are limited.

 

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Microeconomics: a country s choice among the production of
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