-The figure above shows the production possibilities frontier for a country.How does the opportunity cost of station wagons forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?
A)The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.
B)The opportunity cost of moving from point C to point B is less than the movement from point B to point A.
C)The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.
D)The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.
E)More information is needed to determine how the two opportunity costs compare.

Question

-The figure above shows the production possibilities frontier for a country.How does the opportunity cost of station wagons forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?
A)The opportunity cost of moving from point C to point B is the same as the movement from point B to point A. 
B)The opportunity cost of moving from point C to point B is less than the movement from point B to point A. 
C)The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A. 
D)The opportunity cost of moving from point C to point B is greater than the movement from point B to point A. 
E)More information is needed to determine how the two opportunity costs compare.

Quizplus · Accepted Answer

The opportunity cost of moving along a production possibilities frontier typically increases as you move from one end to the other due to the law of increasing opportunity costs. Therefore, moving from point C to point B would generally have a lower opportunity cost than moving from point B to point A.

-The Figure Above Shows the Production Possibilities Frontier for a Country.How