Final answer:
The opportunity cost of military, space, and heavy industry production is typically lower-quality resources for consumer goods producers, as these sectors compete for the same resources, leading to a trade-off where less is available for consumer goods.
Step-by-step explanation:
The opportunity cost of military, space, and heavy industry production for the producers of consumer goods is b. Lower-quality resources.
Opportunity cost refers to the value of the next best alternative that is forgone when a decision is made to allocate resources in one way instead of another. When resources are directed towards military, space, and heavy industry production, fewer resources are available for producing consumer goods. The reduced availability of resources for consumer goods producers generally results in the use of lower-quality resources, which can impact the quality and quantity of consumer goods produced. Furthermore, the shift in resource allocation often leads to an increase in the opportunity cost for society as a whole, as the production potential of consumer goods is diminished.
During the Second World War for example, the focus on military production drastically reduced the resources available for consumer goods in countries involved, leading to scarcity and rationing. Allocative inefficiency occurs when resources are not distributed according to consumer preferences, and it becomes wasteful because it doesn't maximize societal welfare by producing what people most desire or need. Both productive and allocative inefficiencies result in less than optimal production and consumption outcomes.