Use the following figure.

-If the economy represented in the production possibilities figure moved from point W to point X, it would experience:
A) economic growth.
B) an opportunity cost equal to the amount of good A it would give up.
C) an opportunity cost equal to the amount of good B it would give up.
D) no opportunity cost since it would continue to produce at full employment.

Question

Use the following figure.

-If the economy represented in the production possibilities figure moved from point W to point X, it would experience:
A) economic growth. 
B) an opportunity cost equal to the amount of good A it would give up. 
C) an opportunity cost equal to the amount of good B it would give up. 
D) no opportunity cost since it would continue to produce at full employment.

Quizplus · Accepted Answer

Moving from point W to point X on a production possibilities curve involves increasing the production of one good at the expense of another, which defines the concept of opportunity cost.

Use the Following Figure