-The table above presents the production possibilities frontier for a nation.Using the information in the table,when moving from possibility C to D,the cost of 1 unit of a capital good in terms of the consumption goods forgone is ________ consumption goods per capital good.
A)15
B)10
C)20
D)25
E)an undefined amount of

Question

-The table above presents the production possibilities frontier for a nation.Using the information in the table,when moving from possibility C to D,the cost of 1 unit of a capital good in terms of the consumption goods forgone is ________ consumption goods per capital good.
A)15 
B)10 
C)20 
D)25 
E)an undefined amount of

Quizplus · Accepted Answer

The opportunity cost of moving from possibility C to D is calculated by the difference in the number of consumption goods divided by the difference in the number of capital goods. If the table shows that moving from C to D results in a decrease of 100 consumption goods and an increase of 10 capital goods, the cost is 100/10 = 10 consumption goods per capital good.

-The Table Above Presents the Production Possibilities Frontier for a Nation.Using