The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to incur an opportunity cost of
A) 1 million SUVs.
B) 3 million SUVs.
C) 3 million station wagons.
D) 4 million SUVs.
E) 0 because the gain in compact cars exceeds the loss in SUVs.

Question

The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to incur an opportunity cost of
A) 1 million SUVs. 
B) 3 million SUVs. 
C) 3 million station wagons. 
D) 4 million SUVs. 
E) 0 because the gain in compact cars exceeds the loss in SUVs.

Quizplus · Accepted Answer

The Answer of  The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to incur an opportunity cost of
A) 1 million SUVs. 
B) 3 million SUVs. 
C) 3 million station wagons. 
D) 4 million SUVs. 
E) 0 because the gain in compact cars exceeds the loss in SUVs.

The Figure Above Shows the Production Possibilities Frontier for a Country