Choose the letter of the curve in Figure 1.2 that best represents a production possibilities curve for two goods that obey the law of increasing opportunity costs:
A)A.
B)B.
C)C.
D)D.

Question

Choose the letter of the curve in Figure 1.2 that best represents a production possibilities curve for two goods that obey the law of increasing opportunity costs:
A)A. 
B)B. 
C)C. 
D)D.

Quizplus · Accepted Answer

The curve in Figure 1.2 that best represents a production possibilities curve for two goods that obey the law of increasing opportunity costs is C. This is because the curve is concave, indicating that as more of one good is produced, the opportunity cost of producing that good increases, leading to a decrease in the production of the other good. This is consistent with the law of increasing opportunity costs. Curves A and B are linear, which indicates constant opportunity costs, while curve D is convex, indicating decreasing opportunity costs, which are not consistent with the law of increasing opportunity costs.

Choose the Letter of the Curve in Figure 1