Table 1.1. U.S. Production Possibilities Curve Data
$$\begin{array} { l r r r r r r }
& \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \
\text { Capital goods } & 5 & 4 & 3 & 2 & 1 & 0 \
\text { Consumer goods } & 0 & 12 & 22 & 30 & 36 & 40
\end{array}$$
-Refer to Table 1.1. The data in the table show that the U.S. economy produces under conditions of
A) constant opportunity cost
B) increasing opportunity cost
C) decreasing opportunity cost
D) zero opportunity cost

Question

Table 1.1. U.S. Production Possibilities Curve Data
 $$\begin{array} { l r r r r r r } 
& \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \
\text { Capital goods } & 5 & 4 & 3 & 2 & 1 & 0 \
\text { Consumer goods } & 0 & 12 & 22 & 30 & 36 & 40
\end{array}$$
-Refer to Table 1.1. The data in the table show that the U.S. economy produces under conditions of
A) constant opportunity cost
B) increasing opportunity cost
C) decreasing opportunity cost
D) zero opportunity cost

Quizplus · Accepted Answer

The data in the table illustrate increasing opportunity cost because as the production of capital goods decreases (moving from A to F), the additional units of consumer goods produced from reallocating resources increase at a decreasing rate. This pattern reflects the principle of increasing opportunity costs, where to produce more of one good, increasingly larger amounts of the other good must be sacrificed.

Table 11 U -Refer to Table 1