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

question 179

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 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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Definitions:

Emerging Markets

Countries with developing economies that are experiencing rapid growth and industrialization, offering investment opportunities.

Untapped Markets

Markets or segments currently not being served or fully served by companies, representing potential opportunities for expansion or entry.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services in an economy.

Emerging Market

Refers to economies that are in the process of rapid growth and industrialization, offering potential for high returns on investment.