Figure 2.1
-On the production possibilities curve in Figure 2.1 the opportunity costs of increasing agricultural production from 400 tons to 600 tons is:
A) 200 tons of manufacturing.
B) 500 tons of manufacturing.
C) 100 tons of manufacturing.
D) 600 tons of manufacturing.

Question

Figure 2.1
-On the production possibilities curve in Figure 2.1 the opportunity costs of increasing agricultural production from 400 tons to 600 tons is:
A) 200 tons of manufacturing. 
B) 500 tons of manufacturing. 
C) 100 tons of manufacturing. 
D) 600 tons of manufacturing.

Quizplus · Accepted Answer

The opportunity cost is the amount of manufacturing production that must be forgone to increase agricultural production from 400 to 600 tons. If the curve shows a decrease of 200 tons in manufacturing when agricultural production increases by 200 tons, then the opportunity cost is 200 tons of manufacturing.

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