Exhibit 3-3
-Refer to Exhibit 3-3. A movement from Point B to Point C:
A)involves sacrificing bread in order to produce a greater quantity of wine.
B)involves sacrificing wine in order to produce a greater quantity of bread.
C)involves no sacrifice, as the opportunity cost of production is zero everywhere along the production possibilities curve.
D)will increase the level of unemployment in the economy.

Question

​Exhibit 3-3 
-Refer to Exhibit 3-3. A movement from Point B to Point C:
A)​involves sacrificing bread in order to produce a greater quantity of wine. 
B)​involves sacrificing wine in order to produce a greater quantity of bread. 
C)​involves no sacrifice, as the opportunity cost of production is zero everywhere along the production possibilities curve. 
D)​will increase the level of unemployment in the economy.

Quizplus · Accepted Answer

Moving from Point B to C along the production possibilities curve involves producing more wine and less bread. Therefore, the opportunity cost of producing wine (sacrificing bread) increases, indicating that wine becomes relatively more expensive to produce than bread. Hence, this movement involves sacrificing some bread to produce a greater quantity of wine.

​Exhibit 3-3 -Refer to Exhibit 3-3. a Movement from Point B to Point

Exhibit 3-3 -Refer to Exhibit 3-3. a Movement from Point B to Point