-In the above figure, which of the following is TRUE regarding the movements from point A to B
And from point C to D?
I. The movement from point A to B shows that the economy has chosen to produce 100 more jets.
II. The movement from point C to D shows that the economy has chosen to produce 100 more jets.
III. The movement from point A to B and from point C to D have the same opportunity cost.
A) I, II and III
B) II and III
C) I and II
D) I and III

Question

-In the above figure, which of the following is TRUE regarding the movements from point A to B
And from point C to D?
I. The movement from point A to B shows that the economy has chosen to produce 100 more jets.
II. The movement from point C to D shows that the economy has chosen to produce 100 more jets.
III. The movement from point A to B and from point C to D have the same opportunity cost.
A) I, II and III 
B) II and III 
C) I and II 
D) I and III

Quizplus · Accepted Answer

The statements I and II are correct as they describe the movements in terms of jet production. Statement III is not necessarily true as opportunity costs can differ based on the production possibilities curve.

-In the Above Figure, Which of the Following Is TRUE