Use the following to answer questions Production P ossibilities S chedule 2

$\begin{array}{cccccc}
&V & W & X & Y & Z\
\hline\text { Capital goods per period } & 0 & 1 & 2 & 3 & 4 \
\text { Consumer goods per period } & 20 & 18 & 14 & 8 & 0
\end{array}$
-(Exhibit: Production Possibilities Schedule 2)If the economy is producing at alternative X, the opportunity cost to it of producing at Y instead of X is _______ units of consumer goods per period.

Question

Use the following to answer questions Production P ossibilities S chedule 2

$\begin{array}{cccccc}
&V & W & X & Y & Z\
\hline\text { Capital goods per period } & 0 & 1 & 2 & 3 & 4 \
\text { Consumer goods per period } & 20 & 18 & 14 & 8 & 0
\end{array}$
-(Exhibit: Production Possibilities Schedule 2)If the economy is producing at alternative X, the opportunity cost to it of producing at Y instead of X is _______ units of consumer goods per period.

Quizplus · Accepted Answer

Moving from point X to point Y requires a sacrifice of 6 units of consumer goods per period (from 20 to 14). Therefore, the opportunity cost of producing at Y instead of X is 6 units of consumer goods per period.

Use the Following to Answer Questions Production P Ossibilities S