Exhibit 2-10 Production Possibilities Curve Data Suppose an Economy Is Faced with the Production Possibilities Table
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:
A) increase because the production possibility table shows only the maximum efficiency points.
B) increase because of the law of increasing costs.
C) decrease because of the law of increasing costs.
D) decrease because of the finite nature of the resource base.
Correct Answer:
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