-Refer to Exhibit 2-1.The opportunity cost of moving from point A to B is
A) 10,000 units of butter.
B) 20,000 units of butter.
C) 20,000 units of guns.
D) 10,000 units of guns.

Question

-Refer to Exhibit 2-1.The opportunity cost of moving from point A to B is
A) 10,000 units of butter. 
B) 20,000 units of butter. 
C) 20,000 units of guns. 
D) 10,000 units of guns.

Quizplus · Accepted Answer

The opportunity cost of moving from point A to B involves giving up the production of one good to increase the production of another. In this case, moving from A to B would typically mean producing more of one good (e.g., guns) at the expense of producing less of another (e.g., butter). Without the specific details from Exhibit 2-1, the correct answer hinges on understanding that the opportunity cost is what is foregone (in this scenario, it's assumed to be 20,000 units of the good not chosen based on the typical structure of such questions).