Figure 2.1
-On the production possibilities curve in Figure 2.1 the gain from decreasing manufacturing production from 700 tons to 500 tons is:
A) 500 tons of agriculture.
B) 700 tons of agriculture.
C) 200 tons of agriculture.
D) 100 tons of agriculture.

Question

Figure 2.1
-On the production possibilities curve in Figure 2.1 the gain from decreasing manufacturing production from 700 tons to 500 tons is:
A) 500 tons of agriculture. 
B) 700 tons of agriculture. 
C) 200 tons of agriculture. 
D) 100 tons of agriculture.

Quizplus · Accepted Answer

Moving from 700 tons to 500 tons of manufacturing production frees up resources that can be used to produce up to 200 additional tons of agriculture, as represented by the distance between the two points on the production possibilities curve. Therefore, the gain from decreasing manufacturing production from 700 tons to 500 tons is 200 tons of agriculture.

Figure 2.1 -On the Production Possibilities Curve in Figure 2.1 the Gain