In the following table of production possibilities for a country,
$\begin{array} { r r }
\text { Good X } & \text { Good Y } \
\hline 400 \text { units } & 0 \text { units } \
300 \text { units } & 100 \text { units } \
200 \text { units } & 180 \text { units } \
100 \text { units } & 240 \text { units } \
0 \text { units } & 280 \text { units }
\end{array}$
There are __________ opportunity costs when moving to greater production of good X And __________ when moving to greater production of good Y.
A) increasing; decreasing
B) decreasing; constant
C) constant; increasing
D) increasing; increasing

Question

In the following table of production possibilities for a country,
$\begin{array} { r r } 
\text { Good X } & \text { Good Y } \
\hline 400 \text { units } & 0 \text { units } \
300 \text { units } & 100 \text { units } \
200 \text { units } & 180 \text { units } \
100 \text { units } & 240 \text { units } \
0 \text { units } & 280 \text { units }
\end{array}$
There are __________ opportunity costs when moving to greater production of good X And __________ when moving to greater production of good Y.
A) increasing; decreasing
B) decreasing; constant
C) constant; increasing
D) increasing; increasing

Quizplus · Accepted Answer

According to the table, there are increasing opportunity costs when moving to greater production of both goods X and Y. This means that in order to produce more of one good, the country must give up increasing amounts of the other good, implying that the production possibilities frontier is bowed outwards (curved). Therefore, the best choice is D, which represents increasing opportunity costs for both goods, as observed in the table.

In the Following Table of Production Possibilities for a Country