At a point on a production possibilities curve, opportunity cost of more capital goods today is
A) fewer capital goods in the future.
B) fewer consumer goods in the future.
C) fewer consumer goods today.
D) more unemployed resources in the future.

Question

Quizplus · Accepted Answer

The production possibilities curve illustrates the trade-offs in production volume between two choices. If a society chooses to produce more capital goods today, it must do so at the expense of producing fewer consumer goods today, reflecting the opportunity cost of that choice.

At a Point on a Production Possibilities Curve, Opportunity Cost