Production possibilities (alternatives) Refer to the above table.For these data the law of increasing opportunity costs is reflected in the fact that:

Question

Production possibilities (alternatives)  Refer to the above table.For these data the law of increasing opportunity costs is reflected in the fact that:

Quizplus · Accepted Answer

The law of increasing opportunity costs states that as the economy tries to produce more of one good, the opportunity cost of producing that good increases as more and more resources are diverted from other goods. In the table, as more capital goods are produced (moving from left to right), larger and larger amounts of consumer goods must be sacrificed to do so (moving downward along the columns). Therefore, B is the correct answer.

Production Possibilities (Alternatives) Refer to the Above Table