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 B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A) remains constant.
B) decreases.
C) increases
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 B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A) remains constant. 
B) decreases. 
C) increases 
D) initially increases, then decreases.

Quizplus · Accepted Answer

As the economy moves from Point B to Point D, it is producing more motorcycles and fewer hybrid cars, indicating that to produce each additional motorcycle, more and more hybrid cars must be given up. This scenario describes an increasing opportunity cost.

Refer to the Information Provided in Figure 2