Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4
-According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A) decreases.
B) increases.
C) remains constant.
D) initially increases, then decreases.

Question

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.  Figure 2.4
-According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A) decreases. 
B) increases. 
C) remains constant. 
D) initially increases, then decreases.

Quizplus · Accepted Answer

As the economy moves from Point A to Point E, it is typically producing more motorcycles and fewer hybrid cars, which means it has to give up increasingly more hybrid cars to produce each additional motorcycle, indicating an increasing opportunity cost of motorcycles.

Refer to the Information Provided in Figure 2