Refer to the accompanying figure. At point D, the opportunity cost of making milk is:
A)low because the economy is specializing in making milk.
B)high because productive resources that are better-suited to making movies are not being used to make milk.
C)high because productive resources that are better-suited to making movies are being used to make milk.
D)high because the economy is not operating efficiently.

Question

Refer to the accompanying figure. At point D, the opportunity cost of making milk is: 
A)low because the economy is specializing in making milk. 
B)high because productive resources that are better-suited to making movies are not being used to make milk. 
C)high because productive resources that are better-suited to making movies are being used to make milk. 
D)high because the economy is not operating efficiently.

Quizplus · Accepted Answer

At point D almost all of the nation's productive resources are being used to make milk, which implies that resources that are better-suited to making movies are being used to make milk. As a result, the opportunity cost of making milk is high.

Refer to the Accompanying Figure