A steady increase in the efficiency of resource use will lead to which outcome in production?

A steady increase in the efficiency of resource use leads to a higher production of multiple goods because resources—such as labor, capital, and raw materials—are being used more effectively. When efficiency improves, producers can create more output from the same amount of inputs or can produce the same amount of output with fewer inputs. This allows the economy to allocate resources more effectively across various goods and services, resulting in an overall increase in production capabilities.

Higher efficiency means that firms can lower production costs and potentially offer more goods at competitive prices. Additionally, as resources are used more efficiently, the economy can better respond to consumer demand across different sectors, enhancing variety and availability for consumers. Therefore, the correct answer highlights the positive relationship between resource efficiency and increased production, facilitating the ability to produce multiple goods simultaneously.

In contrast, increased opportunity costs would imply that producing more of one good would require sacrificing others, which is not the immediate implication of increased efficiency in resource use. Decreased production capacity is contradictory to the concept of increased efficiency, which enhances capacity, and stabilization of demand does not necessarily relate directly to resource efficiency but rather to market dynamics and consumer behavior.