Alex must prepare for exams in both biology and economics this week. Assume that the production possibilities curve showing the tradeoff between exam scores in biology and economics is concave toward the origin. As Alex moves along the curve spending more of his time studying for economics, the opportunity cost of an hour of preparation for economics:

Question

Quizplus · Accepted Answer

The fact that the production possibilities curve is concave toward the origin indicates that the opportunity cost of an hour of preparation for economics increases as more time is spent studying for economics. Therefore, the best choice is A, as the opportunity cost of an hour of preparation for economics increases as Alex moves along the curve towards more economics study.

Alex Must Prepare for Exams in Both Biology and Economics