-Refer to the above table.For these data the law of increasing opportunity costs is reflected in the fact that:
A) the amount of consumer goods which must be sacrificed to get more capital goods diminishes beyond a point.
B) larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods.
C) the production possibilities data would graph as a straight downsloping line.
D) the economy's resources are presumed not to be scarce.

Question

-Refer to the above table.For these data the law of increasing opportunity costs is reflected in the fact that:
A) the amount of consumer goods which must be sacrificed to get more capital goods diminishes beyond a point. 
B) larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods. 
C) the production possibilities data would graph as a straight downsloping line. 
D) the economy's resources are presumed not to be scarce.

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as production of one good increases, the opportunity cost of producing an additional unit of this good also increases, meaning more of the other good must be sacrificed.

-Refer to the Above Table