Exhibit 2-10 Production Possibilities Curve Data Suppose an Economy Is Faced with the Production Possibilities Table

question 95

Multiple Choice

Exhibit 2-10 Production possibilities curve data $$\begin{array} { | l | r | r | r | r | r | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \\\text { Consumption goods } & 25 & 23 & 19 & 13 & 0 \\\hline\end{array}$$ 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:

• A) increase because the production possibility table shows only the maximum efficiency points.
• B) increase because of the law of increasing costs.
• C) decrease because of the law of increasing costs.
• D) decrease because of the finite nature of the resource base.

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Definitions:

Neck

The part of the body connecting the head to the rest of the body, containing structures of the digestive and respiratory tracts as well as major blood vessels and nerves.

Sternocleidomastoid

A muscle in the neck that runs from the sternum and clavicle to the mastoid process of the temporal bone, involved in facilitating rotation and flexion of the neck.

Semispinalis Capitis

is a muscle of the back located beneath the trapezius, playing a key role in extending, rotating, and bending the head backwards.

Splenius Capitis

A muscle located in the back of the neck that functions in extending and rotating the head.