The Fact of Increasing Opportunity Cost When Moving on the PPF

question 39

Multiple Choice

The fact of increasing opportunity cost when moving on the PPF means that

• A)when the government forces a movement from one point on the PPF to another point,no production is lost.
• B)to increase the production of one product requires smaller and smaller sacrifices of the other good.
• C)the PPF will be a negatively sloped straight line.
• D)to increase the production of one product requires larger and larger sacrifices of the other good.
• E)to decrease the production of one product requires smaller and smaller sacrifices of the other good.

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Definitions:

Supply

The complete quantity of a particular product or service accessible to buyers.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Movement

A change or development in a particular direction, often referring to social, political, or economic shifts.

Price

The cost at which a product or service is offered to consumers, reflecting its value in the market.