All of the following are true of transportation in economics except:

• A. Transportation always decreases the opportunity cost of production.
• B. Transportation costs can affect the final price of goods for consumers.
• C. Transportation increases the value of goods by moving them from areas of surplus to areas of scarcity.
• D. Efficient transportation systems can promote economic growth.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the role of transportation in economics. Transportation involves moving goods from one location to another, which can affect costs, prices, and the distribution of goods.
2. Step 2: Analyze the statement 'Transportation always decreases the opportunity cost of production.' Opportunity cost refers to the value of the next best alternative foregone. Consider whether transportation inherently reduces this cost or if it can sometimes add to costs.
3. Step 3: Review the other statements: transportation costs affecting final prices, transportation increasing value by moving goods from surplus to scarcity areas, and efficient transportation promoting economic growth. These are generally accepted economic principles.
4. Step 4: Compare each statement to economic theory and real-world examples to identify which one is not true. Focus on the concept that transportation may add costs rather than always decreasing opportunity costs.
5. Step 5: Conclude that the statement about transportation always decreasing opportunity cost is incorrect because transportation can sometimes increase costs, including opportunity costs, depending on the context.