Exhibit 2-10 Production possibilities curve data $$\begin{array} { | l | r | r | r | r | r | }
\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \
\text { Consumption goods } & 25 & 23 & 19 & 13 & 0 \
\hline
\end{array}$$
-Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. The first unit of capital goods will cost the economy ____ units of consumption goods.

Question

Exhibit 2-10 Production possibilities curve data $$\begin{array} { | l | r | r | r | r | r | } 
\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \
\text { Consumption goods } & 25 & 23 & 19 & 13 & 0 \
\hline
\end{array}$$
-Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. The first unit of capital goods will cost the economy ____ units of consumption goods.

Quizplus · Accepted Answer

The first unit of capital goods costs the economy 2 units of consumption goods, as moving from 0 to 1 capital goods reduces consumption goods from 25 to 23.

Exhibit 2-10 Production Possibilities Curve Data -Suppose an Economy Is Faced with the Production Possibilities Table