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. As we move from point A to point F, the
A) opportunity cost of consumer goods in terms of capital goods is unchanged
B) opportunity cost of consumer goods in terms of capital goods increases
C) economy becomes more productive in producing both goods
D) economy becomes less productive in producing both goods

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. As we move from point A to point F, the
A) opportunity cost of consumer goods in terms of capital goods is unchanged
B) opportunity cost of consumer goods in terms of capital goods increases
C) economy becomes more productive in producing both goods
D) economy becomes less productive in producing both goods

Quizplus · Accepted Answer

The opportunity cost of consumer goods in terms of capital goods increases as we move from point A to point F. This is because to produce more consumer goods, increasingly more capital goods must be sacrificed, indicating a rising opportunity cost.

Table 11 U -Refer to Table 1