Table 3-2
-The concept of opportunity cost can be represented graphically by the
A)area inside the production possibilities frontier.
B)slope of the production possibilities frontier.
C)vertical distance from the horizontal axis to the production possibilities frontier.
D)horizontal distance from the vertical axis to the production possibilities frontier.
E)sum of the horizontal and vertical distances to the production possibilities frontier.

Question

Table 3-2  ​
-The concept of opportunity cost can be represented graphically by the
A)area inside the production possibilities frontier. 
B)slope of the production possibilities frontier. 
C)vertical distance from the horizontal axis to the production possibilities frontier. 
D)horizontal distance from the vertical axis to the production possibilities frontier. 
E)sum of the horizontal and vertical distances to the production possibilities frontier.

Quizplus · Accepted Answer

The slope of the production possibilities frontier represents the opportunity cost of producing one good in terms of the other. As you move along the curve, producing more of one good requires giving up increasing amounts of the other good, which is exactly what opportunity cost is all about.

Table 3-2 ​

Table 3-2