Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:
A)cannot be realized because resources are fully employed.
B)will cost 1 unit of computers.
C)will cost 2 units of computers.
D)will cause some resources to become unemployed.

Question

Refer to the above diagram.If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:
A)cannot be realized because resources are fully employed. 
B)will cost 1 unit of computers. 
C)will cost 2 units of computers. 
D)will cause some resources to become unemployed.

Quizplus · Accepted Answer

Moving from point D to produce 2 more units of bicycles would require shifting resources away from computer production, resulting in a decrease in computer production by 1 unit. This can be seen by the slope of the PPF at point D, which represents the opportunity cost of producing bicycles in terms of computers.

Refer to the Above Diagram