Exhibit 2-10 Production possibilities curve data
Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must ____, because ____.
A) increase; the production possibility table shows only the maximum efficiency points
B) increase; of the law of increasing costs
C) decrease; of the law of increasing costs
D) decrease; of the finite nature of the resource base
E) increase; capital goods will assist in the production of consumer goods
Correct Answer:
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