A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule. In moving stepwise from possibility A to B to C … to F, the marginal opportunity cost of a unit of steel in terms of wheat
A) increases.
B) decreases.
C) remains constant.
D) increases at first, then decreases.

Question

A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule.  In moving stepwise from possibility A to B to C … to F, the marginal opportunity cost of a unit of steel in terms of wheat
A) increases. 
B) decreases. 
C) remains constant. 
D) increases at first, then decreases.

Quizplus · Accepted Answer

Moving from possibility A to F, the amount of wheat that must be given up to produce one more unit of steel increases, indicating an increasing marginal opportunity cost of steel in terms of wheat.

A Nation Can Produce Two Products: Steel and Wheat