Answer the Question on the Basis of the Data Given

question 63

Multiple Choice

Answer the question on the basis of the data given in the following production possibilities table. Refer to the table. For these data, the law of increasing opportunity costs is reflected in the fact that

• A) the amount of consumer goods that must be sacrificed to get more capital goods diminishes beyond a point.
• B) larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods.
• C) the production possibilities data would graph as a straight downsloping line.
• D) the economy's resources are presumed to be scarce.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Wasting Assets

Resources that decrease in value over time due to physical deterioration or depletion, such as minerals, oil reserves, or patents.