Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:
A)cannot be realized because resources are fully employed.
B)will cost 1 unit of computers.
C)will cost 2 units of computers.
D)will cause some resources to become unemployed.

Question

Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:
A)cannot be realized because resources are fully employed. 
B)will cost 1 unit of computers. 
C)will cost 2 units of computers. 
D)will cause some resources to become unemployed.

Quizplus · Accepted Answer

Moving from point D to a production of 2 more units of bicycles would require a shift along the production possibilities curve, meaning society would have to give up some computer production. From point D, the opportunity cost of producing 2 more bicycles is 1 unit of computers (moving from point D to point E). Therefore, society would have to sacrifice 1 unit of computer production to produce 2 more bicycles.

Refer to the Above Diagram