Exhibit 2-8 Production possibilities curve data
A
B
C
D
E
F
Capital goods15
14
12
9
5
0
Consumer goods 0
2
4
6
8
10
As shown in Exhibit 2-8, the concept of increasing opportunity costs is reflected in the fact that:
A. the quantity of consumer goods produced can never be zero.
B. the labor force in the economy is homogeneous.
C. greater amounts of capital goods must be sacrificed to produce each additional 2 units of consumer goods.
D. a graph of the production data is a downward-sloping straight line.
Answer: C
You might also like to view...
Marginal cost is best defined as
A) the extra cost of producing one more unit of output. B) the profit earned from selling one more unit of output. C) the price received from selling one more unit of output. D) equal to producer surplus.
All of the following would affect the position and shape of a nation's production possibilities curve, except:
A. The amount of labor available B. The level of unemployment C. The amount of the capital resources D. The rate of technological progress