Exhibit 2-10  Production Possibilities Curve Data Suppose an Economy Is

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