What outcome is expected when production shifts from one good to another?

The correct answer revolves around the concept of opportunity costs, which reflects the trade-off involved when resources are reallocated from the production of one good to another. As production shifts from one good to another, especially when moving along a production possibilities frontier (PPF), the opportunity cost typically rises. This occurs because resources are not equally efficient across all types of goods.

For instance, if a country is moving resources from producing wheat to producing cars, the initial resources shifted may be less specialized for car production, meaning that the more cars they want to produce, the more wheat they have to give up. Consequently, the opportunity cost of the additional cars increases as production continues to shift, which leads to increased opportunity costs over time as production focuses on less-efficient uses of resources.

This dynamic explains why the outcome of shifting production is often characterized by rising opportunity costs, making it the correct choice in this scenario.