Figure 2.1
-On the production possibilities curve in Figure 2.1 the opportunity costs of increasing agricultural production from 400 tons to 600 tons is:
A)600 tons of manufacturing.
B)500 tons of manufacturing.
C)200 tons of manufacturing.
D)100 tons of manufacturing.

Question

Figure 2.1
-On the production possibilities curve in Figure 2.1 the opportunity costs of increasing agricultural production from 400 tons to 600 tons is:
A)600 tons of manufacturing. 
B)500 tons of manufacturing. 
C)200 tons of manufacturing. 
D)100 tons of manufacturing.

Quizplus · Accepted Answer

Moving from 400 to 600 tons of agricultural production requires shifting resources from manufacturing to agriculture. As we move down the curve (from left to right) the opportunity cost of producing additional units of agriculture rises. In this case, the cost of 200 tons of manufacturing is the opportunity cost of producing 200 additional units of agriculture. Therefore, the best answer is C.

Figure 2.1 -On the Production Possibilities Curve in Figure 2.1 the Opportunity