Use the figure below to answer the following questions.

Figure 2.1.2
-Consider the production possibilities frontier in Figure 2.1.2,and assume that everything that is produced is also consumed.Which of the following statements is false?
A)Resources are not equally useful in all activities.
B)Points inside the frontier indicate unused or misallocated resources.
C)Starting at point A, an increase in the production of Y will shift the frontier outward.
D)The opportunity cost of producing Y increases as production of Y increases.
E)The opportunity cost of producing X increases as production of X increases.

Question

Use the figure below to answer the following questions.
  
Figure 2.1.2
-Consider the production possibilities frontier in Figure 2.1.2,and assume that everything that is produced is also consumed.Which of the following statements is false?
A)Resources are not equally useful in all activities. 
B)Points inside the frontier indicate unused or misallocated resources. 
C)Starting at point A, an increase in the production of Y will shift the frontier outward. 
D)The opportunity cost of producing Y increases as production of Y increases. 
E)The opportunity cost of producing X increases as production of X increases.

Quizplus · Accepted Answer

Option C is false because an increase in the production of Y will not shift the frontier outward from point A. The frontier represents the maximum possible production given the available resources and technology. To shift the frontier outward, there must be an increase in the quantity or quality of resources or an improvement in technology.

Use the Figure Below to Answer the Following Questions