Solved

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

Question 103

Multiple Choice

Exhibit 2-10 Production possibilities curve data  A  B  C  D  E  Capital goods 01234 Consumption goods 252319130\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. As additional units of capital goods are produced, the opportunity cost in terms of sacrificed units of consumption goods ____ because of ____.


A) decreases; greater efficiency in production
B) increases; decreasing opportunity cost
C) increases; the law of increasing costs
D) increases; greater efficiency in production
E) decreases; the law of increasing costs

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents