Exhibit 2-10 Production Possibilities Curve Data   Suppose an Economy

question 128

Multiple Choice

Exhibit 2-10 Production possibilities curve data   Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. As additional units of capital goods are being produced, the number of consumption goods produced must ____, because ____.

• A)increase; the production possibility table shows only the maximum efficiency points
• B)increase; of the law of increasing costs
• C)decrease; of the law of increasing costs
• D)decrease; of the finite nature of the resource base
• E)increase; capital goods will assist in the production of consumer goods

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