-Refer to the production possibilities frontier figure above. Which of the following movements requires the largest opportunity cost, in terms of good X forgone, per extra unit of good Y?
A) from point c to point b
B) from point b to point a
C) from point e to point d
D) from point d to point c

Question

-Refer to the production possibilities frontier figure above. Which of the following movements requires the largest opportunity cost, in terms of good X forgone, per extra unit of good Y?
A) from point c to point b 
B) from point b to point a 
C) from point e to point d 
D) from point d to point c

Quizplus · Accepted Answer

The opportunity cost is highest when moving from point b to point a because the production possibilities frontier is typically concave, indicating increasing opportunity costs. As you move from b to a, you are likely moving from a point where resources are more efficiently used for producing good X to a point where they are less efficiently used, thus incurring a higher opportunity cost in terms of good X forgone.

-Refer to the Production Possibilities Frontier Figure Above