Exhibit 1
-Refer to Exhibit 1. As we move from point A to point D,
A) the opportunity cost of eggs in terms of bacon falls.
B) the opportunity cost of eggs in terms of bacon rises.
C) the opportunity cost of eggs in terms of bacon is constant.
D) the economy becomes less efficient.
E) the economy becomes more efficient.

Question

Exhibit 1 
-Refer to Exhibit 1. As we move from point A to point D,
A) the opportunity cost of eggs in terms of bacon falls. 
B) the opportunity cost of eggs in terms of bacon rises. 
C) the opportunity cost of eggs in terms of bacon is constant. 
D) the economy becomes less efficient. 
E) the economy becomes more efficient.

Quizplus · Accepted Answer

As we move from point A to point D, the slope of the production possibilities curve (PPC) becomes steeper, indicating an increasing opportunity cost of producing one good in terms of the other. Therefore, the opportunity cost of eggs in terms of bacon rises.

Exhibit 1 -Refer to Exhibit 1. as We Move from Point a from Point