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-Exhibit B-3 Shows an Economy's Production Possibilities Table

Question 53

Multiple Choice

  -Exhibit B-3 shows an economy's production possibilities table. As additional units of capital goods are produced, the quantity of consumption goods produced _________,because _____________. A)  increases; the production possibilities table shows only the maximum efficiency points B)  increases; of the law of increasing costs C)  decreases; of the law of increasing costs D)  decreases; there is a limited supply of resources E)  increases; capital goods are used to produce consumption goods
-Exhibit B-3 shows an economy's production possibilities table. As additional units of capital goods are produced, the quantity of consumption goods produced _________,because _____________.


A) increases; the production possibilities table shows only the maximum efficiency points
B) increases; of the law of increasing costs
C) decreases; of the law of increasing costs
D) decreases; there is a limited supply of resources
E) increases; capital goods are used to produce consumption goods

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