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Figure 3.3.1 -Which Statement About the PPF in Figure 3.3.1 Is True

Question 73

Multiple Choice

  Figure 3.3.1 -Which statement about the PPF in Figure 3.3.1 is true? A)  Inputs are equally productive in all activities. B)  Points inside the frontier represent impossible combinations of good X and good Y. C)  The opportunity cost of producing good X decreases as production of X increases. D)  The opportunity cost of producing good Y increases as production of Y increases. E)  Changes in consumer preferences for good X or good Y will shift the PPF.
Figure 3.3.1
-Which statement about the PPF in Figure 3.3.1 is true?


A) Inputs are equally productive in all activities.
B) Points inside the frontier represent impossible combinations of good X and good Y.
C) The opportunity cost of producing good X decreases as production of X increases.
D) The opportunity cost of producing good Y increases as production of Y increases.
E) Changes in consumer preferences for good X or good Y will shift the PPF.

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