Exhibit 2-10 Production Possibilities Curve Data

question 21

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 produced, the opportunity cost in terms of sacrificed units of consumption goods ____ because of ____.

• A)decreases; greater efficiency in production
• B)increases; decreasing opportunity cost
• C)increases; the law of increasing costs
• D)increases; greater efficiency in production
• E)decreases; the law of increasing costs

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