The table above shows the production possibilities for an economy. Drawing a PPF with books on the vertical axis and bread on the horizontal axis, a movement from possibility B to possibility C to possibility D shows the opportunity cost of ________ moving down along the PPF.
A) books decreases
B) books and bread are both increasing
C) bread decreases
D) books is constant
E) bread increases

Question

Quizplus · Accepted Answer

As you move down along the PPF from B to C to D, the economy is producing more bread, indicating that the opportunity cost of producing additional bread is increasing.

The Table Above Shows the Production Possibilities for an Economy