Use the table below to answer the following questions.
Table 2.1.1
The following table gives points on the production possibilities frontier for goods X and Y.
-Refer to Table 2.1.1.The opportunity cost of increasing the production of Y from 16 to 36 units is
A)8 units of X.
B)4 units of X.
C)16 units of X.
D)12 units of X.
E)20 units of Y.

Question

Use the table below to answer the following questions.
Table 2.1.1
The following table gives points on the production possibilities frontier for goods X and Y. 
-Refer to Table 2.1.1.The opportunity cost of increasing the production of Y from 16 to 36 units is
A)8 units of X. 
B)4 units of X. 
C)16 units of X. 
D)12 units of X. 
E)20 units of Y.

Quizplus · Accepted Answer

The opportunity cost of producing more of one good is the amount of the other good that must be given up. In this case, to increase the production of Y from 16 to 36 units, the table would show a decrease in the production of X. The correct opportunity cost is the amount of X forgone to produce the additional units of Y.

Use the Table Below to Answer the Following Questions