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.As the production of X increases,
A)the production of Y increases.
B)the amount of X produced increases at an increasing rate.
C)unemployment increases.
D)the opportunity cost of each additional unit of X produced increases.
E)the opportunity cost of each additional unit of X produced decreases.

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.As the production of X increases,
A)the production of Y increases. 
B)the amount of X produced increases at an increasing rate. 
C)unemployment increases. 
D)the opportunity cost of each additional unit of X produced increases. 
E)the opportunity cost of each additional unit of X produced decreases.

Quizplus · Accepted Answer

As the production of X increases, more resources have to be shifted from producing Y to producing X, resulting in a decrease in the production of Y. This means the opportunity cost of producing X (in terms of the production of Y foregone) increases. Therefore, option D is correct. None of the other options are true based on the information given in the table.

Use the Table Below to Answer the Following Questions