Figure 2.1
-On the production possibilities curve in Figure 2.1 the gain from decreasing manufacturing production from 700 tons to 500 tons is:
A)700 tons of agriculture.
B)500 tons of agriculture.
C)200 tons of agriculture.
D)100 tons of agriculture.

Question

Figure 2.1
-On the production possibilities curve in Figure 2.1 the gain from decreasing manufacturing production from 700 tons to 500 tons is:
A)700 tons of agriculture. 
B)500 tons of agriculture. 
C)200 tons of agriculture. 
D)100 tons of agriculture.

Quizplus · Accepted Answer

Moving from 700 tons to 500 tons of manufacturing results in a gain of 200 tons of agriculture. This is the difference between the two points on the curve where the vertical intercept of the agriculture axis is the same. Therefore, the best choice is option C.

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