Refer to the information provided in Figure 2.3 below to answer the question(s) that follow. Figure 2.3
-Refer to Figure 2.3. Assume that in this society the opportunity cost of sailboats in terms of surfboards is increasing. A graph of this society's production possibility frontier will be represented by Panel
A) A.
B) B.
C) C.
D) D.

Question

Refer to the information provided in Figure 2.3 below to answer the question(s) that follow.  Figure 2.3
-Refer to Figure 2.3. Assume that in this society the opportunity cost of sailboats in terms of surfboards is increasing. A graph of this society's production possibility frontier will be represented by Panel
A) A. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

The opportunity cost of sailboats in terms of surfboards is increasing, which means that it takes more surfboards to produce a sailboat. This will shift the production possibility frontier inward, as the society can now produce less of both goods. Panel A shows this inward shift.

Refer to the Information Provided in Figure 2