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Exhibit 2-10  Production Possibilities Curve Data Suppose an Economy Is

question 88

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Exhibit 2-10  Production possibilities curve data 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 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 ____.


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