A Society Can Produce Two Goods: Bread and Biscuits

question 21

Multiple Choice

A society can produce two goods: bread and biscuits. The society's production possibility curve is negatively sloped and "bowed outward" from the origin. As this society moves down its production possibility frontier and produces more and more units of biscuits, the opportunity cost of producing biscuits:

• A) remains constant
• B) could increase or decrease depending on the technology
• C) increases
• D) decreases

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