-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 and III
B) I, II and III
C) I and II
D) II 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 and III 
B) I, II and III 
C) I and II 
D) II and III

Quizplus · Accepted Answer

The movement from point A to B and from point C to D both show an increase in jet production by 100 units. However, the opportunity costs may differ depending on the production possibilities curve's shape, which is not specified here.

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