Narrbegin Exhibit 2.1 Production possibilities frontier data
$$\begin{array} { | c | c | }
\hline \text { Consumption gads } & \text { Capital goods } \
\hline 10 & 0 \
\hline 9 & 1 \
\hline 7 & 2 \
\hline 4 & 3 \
\hline 0 & 4 \
\hline
\end{array}$$ Narrend
-In Exhibit 2.1, the opportunity cost of producing four units of capital goods is:

Question

Narrbegin Exhibit 2.1 Production possibilities frontier data
 $$\begin{array} { | c | c | } 
\hline \text { Consumption gads } & \text { Capital goods } \
\hline 10 & 0 \
\hline 9 & 1 \
\hline 7 & 2 \
\hline 4 & 3 \
\hline 0 & 4 \
\hline
\end{array}$$ Narrend
-In Exhibit 2.1, the opportunity cost of producing four units of capital goods is:

Quizplus · Accepted Answer

To produce four units of capital goods, the economy must move from producing 10 units of consumption goods (with 0 units of capital goods) to producing 0 units of consumption goods (with 4 units of capital goods). This means the opportunity cost of producing four units of capital goods is 10 units of consumption goods.

Narrbegin Exhibit 2 Narrend -In Exhibit 2

Narrbegin Exhibit 2 Narrend
-In Exhibit 2