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) decreases.
B) increases.
C) remains the same.
D) decreases from possibility A to C, and then increases from possibility C to D.
E) cannot be calculated.
B
Economics
You might also like to view...
If the demand elasticity for corn is -0.5, then a 5% increase in the quantity demanded to the market will result in a price change of
A. +5% B. +10% C. -5% D. -10%
Economics
Command-and-control policies usually:
A. reduce the production of a polluting good more than do pollution taxes. B. reduce the production of a polluting good less than do pollution taxes. C. increase price less than do pollution taxes. D. decrease the quantity demanded by less than do pollution taxes.
Economics