-The table above presents the production possibilities frontier for a nation.Using the information in the table,when moving from possibility A to B to C to ultimately E,the cost of a unit of capital goods in terms of consumption goods
A) increases.
B) decreases.
C) remains the same.
D) decreases from possibility A to C, and then increases from possibility C to D.
E) cannot be calculated.

Question

-The table above presents the production possibilities frontier for a nation.Using the information in the table,when moving from possibility A to B to C to ultimately E,the cost of a unit of capital goods in terms of consumption goods
A) increases. 
B) decreases. 
C) remains the same. 
D) decreases from possibility A to C, and then increases from possibility C to D. 
E) cannot be calculated.

Quizplus · Accepted Answer

The cost of a unit of capital goods in terms of consumption goods increases as we move from possibility A to E. This is because, to produce more capital goods, the nation has to give up increasingly larger amounts of consumption goods, indicating a rising opportunity cost.

-The Table Above Presents the Production Possibilities Frontier for a Nation.Using