The Production Possibilities Table Below Shows the Hypothetical Relationship Between

question 12

Multiple Choice

The production possibilities table below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy. Refer to the table above.What is the opportunity cost of producing the first two units of capital goods?

• A) 4 units of consumer goods
• B) 5 units of consumer goods
• C) 9 units of consumer goods
• D) 13 units of consumer goods Increasing capital goods from Point A to C requires giving up 9 (22 - 13 = 9)consumer goods.

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