-In the figure above, moving from point B to point D
A) requires an increase in technology.
B) has an opportunity cost of one ton of guns per month.
C) is impossible.
D) has an opportunity cost of one ton of butter per month.

Question

-In the figure above, moving from point B to point D
A) requires an increase in technology. 
B) has an opportunity cost of one ton of guns per month. 
C) is impossible. 
D) has an opportunity cost of one ton of butter per month.

Quizplus · Accepted Answer

Moving from point B to point D implies reallocating resources from producing guns to producing more butter, thus the opportunity cost is the amount of guns forgone, which is one ton of butter per month.

-In the Figure Above, Moving from Point B to Point