Figure 3-7
-In Figure 3-7, if we compare a move from point B to C with a move from point A to point B, we can see that
A)the opportunity cost of the move from B to C is higher than the opportunity cost of a move from A to B.
B)the opportunity cost of the move from B to C is lower than the opportunity cost of a move from A to B.
C)the opportunity cost of the move from B to C is equal to the opportunity cost of a move from A to B.
D)the production possibilities frontier has a positive slope.

Question

Figure 3-7 
-In Figure 3-7, if we compare a move from point B to C with a move from point A to point B, we can see that
A)the opportunity cost of the move from B to C is higher than the opportunity cost of a move from A to B. 
B)the opportunity cost of the move from B to C is lower than the opportunity cost of a move from A to B. 
C)the opportunity cost of the move from B to C is equal to the opportunity cost of a move from A to B. 
D)the production possibilities frontier has a positive slope.

Quizplus · Accepted Answer

Moving from B to C means giving up the production of more guns to make more butter. This requires a higher opportunity cost compared to moving from A to B where less butter is given up for the production of more guns.

Figure 3-7 -In Figure 3-7, If We Compare a Move from Point