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Hypothetical Production Schedule for a Two-Product Economy -If the Economy Were Producing at Point C and Moves

Question 137

Multiple Choice

Hypothetical Production Schedule for a Two-Product Economy Units ofUnits of Points  Consumer Goods  Capital Goods  A 020 B 4016 C 7212 D 968 E 1124 F 1200\begin{array}{ccc}&Units~ of&Units~ of\\\text { Points } & \text { Consumer Goods } & \text { Capital Goods } \\\hline \text { A } & 0 & 20 \\\text { B } & 40 & 16 \\\text { C } & 72 & 12 \\\text { D } & 96 & 8 \\\text { E } & 112 & 4 \\\text { F } & 120 & 0\end{array}
-If the economy were producing at point C and moves to point B


A) 4 units of capital goods are gained,while the capacity to produce 32 consumer goods are lost.
B) 16 units of capital goods are gained at an opportunity cost of producing 40 consumer goods.
C) 16 units of capital goods are gained at an opportunity cost of producing 72 consumer goods.
D) 4 units of capital goods are gained,while the capacity to produce 72 consumer goods are lost.

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