Use the table below to answer the following questions.
Table 2.1.2
Production Possibilities
-Refer to Table 2.1.2.According to this production possibilities frontier,
A)a combination of 6 kilograms of butter and 1 snowshoe is inefficient.
B)a combination of 0 kilograms of butter and 4 snowshoes is attainable.
C)resources are equally useful in all activities.
D)the opportunity cost of producing snowshoes increases as more snowshoes are produced.
E)the opportunity cost of producing snowshoes decreases as more snowshoes are produced.

Question

Use the table below to answer the following questions.
Table 2.1.2
Production Possibilities 
-Refer to Table 2.1.2.According to this production possibilities frontier,
A)a combination of 6 kilograms of butter and 1 snowshoe is inefficient. 
B)a combination of 0 kilograms of butter and 4 snowshoes is attainable. 
C)resources are equally useful in all activities. 
D)the opportunity cost of producing snowshoes increases as more snowshoes are produced. 
E)the opportunity cost of producing snowshoes decreases as more snowshoes are produced.

Quizplus · Accepted Answer

The correct answer is D because the production possibilities frontier (PPF) typically shows increasing opportunity costs for producing one good as more of that good is produced, due to the law of increasing opportunity costs. This means that as more snowshoes are produced, the resources used are less and less efficient at producing snowshoes, leading to a higher opportunity cost.

Use the Table Below to Answer the Following Questions