Exhibit 2-6 Production possibilities curve data

A

B

C

D

E

F

Capital goods
150

140

120

90

50

0

Consumer goods
0

20

40

60

80

100

In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:

Question

Exhibit 2-6 Production possibilities curve data

	A	B	C	D	E	F
Capital goods	150	140	120	90	50	0
Consumer goods	0	20	40	60	80	100

In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:

Quizplus · Accepted Answer

The production possibilities curve shows that as increasing amounts of consumer goods are produced, there is a trade-off in terms of the amount of capital goods that must be sacrificed. This means that the opportunity cost of producing additional units of consumer goods increases as more and more are produced, resulting in a concave shape to the production possibilities curve. Therefore, choice C accurately represents the concept of increasing opportunity costs. Choices A, B, and D do not accurately reflect this concept.

Exhibit 2-6 Production Possibilities Curve Data