Figure 2-8
-Refer to Figure 2-8.For this economy,as more and more hammers are produced,the opportunity cost of an additional hammer produced,in terms of nails,

Question

Figure 2-8 
-Refer to Figure 2-8.For this economy,as more and more hammers are produced,the opportunity cost of an additional hammer produced,in terms of nails,

Quizplus · Accepted Answer

As the economy moves from point A to point F, the opportunity cost of producing an additional hammer increases because more and more nails must be given up for each additional hammer produced. This is represented by the increasing slope of the production possibilities curve. Therefore, the correct answer is (B) increases.

Figure 2-8 -Refer to Figure 2-8.For This Economy,as More and More Hammers