Chapter 2: Problem 24

As we produce increasing amounts of a particular good, the resources used in its production ( \(\angle 07)\) a) become more suitable b) become less suitable c) continue to have the same suitability

Short Answer

Expert verified

As the production of a good increases, the resources used in the process become less suitable, according to the Law of Diminishing Returns. This means that each additional input yields a smaller incremental increase in output. Therefore, the correct answer is (b) become less suitable.

Step by step solution

Understand the concept of resource suitability

In the context of this exercise, resource suitability refers to how well a particular resource can be used or is suitable for producing a particular good. As production increases, it's important to see if the resources used in the process become more or less suitable, or whether their suitability remains the same.

Analyze each given option

a) Become more suitable: This option suggests that as production increases, the resources used become better and more efficient at producing the good. b) Become less suitable: This option suggests that as production increases, the resources used become less efficient and less appropriate for producing the good. c) Continue to have the same suitability: This option suggests that the suitability of the resources used remains constant, regardless of the increase in production.

Determine the Law of Diminishing Returns

The Law of Diminishing Returns is an economic principle that states that as more inputs (resources) are added in the production process, at a certain point, each additional input yields a smaller incremental increase in output. In other words, as the production of a good increases, the resources used in the production process become less suitable because they are less efficient in producing additional units of the good.

Choose the correct answer

Based on the understanding of resource suitability and the Law of Diminishing Returns, the correct answer is: b) as the production of a good increases, the resources used in the process become less suitable.

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