Figure 2.1
-On the production possibilities curve in Figure 2.1,as agricultural production increases by 200 tons per year from 200 tons to 400 tons and then to 600 tons,the opportunity cost in terms of tons of manufactured goods

Question

Quizplus · Accepted Answer

As agricultural production increases, more resources must be shifted away from manufacturing towards agriculture. This means that the opportunity cost of producing an additional ton of agricultural goods increases, resulting in a rise in the opportunity cost in terms of manufactured goods. Therefore, the correct choice is A.

Figure 2.1 -On the Production Possibilities Curve in Figure 2.1,as Agricultural Production