If an economy could produce 0 capital goods and 200 consumption goods, or 10 capital goods and 180 consumption goods with full employment, construct two additional full employment production options that would exhibit the law of increasing opportunity costs.
A) 20 capital goods and 160 consumption goods; 30 capital goods and 140 consumption goods
B) 0 capital goods and 220 consumption goods; 10 capital goods and 210 consumption goods
C) 20 capital goods and 140 consumption goods; 30 capital goods and 80 consumption goods
D) 40 capital goods and 140 consumption goods; 50 capital goods and 120 consumption goods
Correct Answer:
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Q61: Exhibit 2-11 Production possibilities curves Q62: The law of increasing opportunity costs causes Q63: Exhibit 2-13 Production possibilities curve Q64: The production possibility curve is bowed outward Q65: Exhibit 2-2 Production possibilities curve Q67: Exhibit 2-9 Production possibilities curve Q68: Exhibit 2-6 Production possibilities curve data Q69: Exhibit 2-16 Production possibilities curve Q70: Exhibit 2-15 Production possibilities curve Q71: The law of increasing costs indicates that Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
