Refer to the information provided in Figure 2.3 below to answer the questions that follow. Figure 2.3
-Refer to Figure 2.3. Assume that in this society the opportunity cost of sailboats in terms of surfboards is increasing. A graph of this society's production possibility frontier will be represented by
A) A.
B) B.
C) C.
D) D.

Question

Refer to the information provided in Figure 2.3 below to answer the questions that follow.  Figure 2.3
-Refer to Figure 2.3. Assume that in this society the opportunity cost of sailboats in terms of surfboards is increasing. A graph of this society's production possibility frontier will be represented by
A) A. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

The opportunity cost of sailboats in terms of surfboards is increasing, which means that it takes more surfboards to produce a sailboat. This will shift the production possibility frontier inward, as it will now take more resources to produce the same amount of goods. The correct answer is A, as this graph shows a production possibility frontier that is shifting inward.

Refer to the Information Provided in Figure 2