Use the figure below to answer the following questions.
Figure 2.1.3
-Figure 2.1.3 illustrates Mary's production possibilities frontier.If Mary wants to move from point B to point C, Mary must
A)give up some of good X to obtain more of good Y.
B)increase capital.
C)improve technology.
D)pay more for her factors of production.
E)give up some of good Y to obtain more of good X.

Question

Use the figure below to answer the following questions.
  Figure 2.1.3
-Figure 2.1.3 illustrates Mary's production possibilities frontier.If Mary wants to move from point B to point C, Mary must
A)give up some of good X to obtain more of good Y. 
B)increase capital. 
C)improve technology. 
D)pay more for her factors of production. 
E)give up some of good Y to obtain more of good X.

Quizplus · Accepted Answer

Moving from point B to point C requires Mary to produce more of good X, but this comes at the cost of producing less of good Y. Therefore, Mary must give up some of good Y to obtain more of good X. This is illustrated by the slope of the production possibilities frontier between points B and C, which is negative (i.e. as Mary produces more of X, she must give up some of Y).

Use the Figure Below to Answer the Following Questions