If a society is currently producing the combination of bicycles and computers shown by point D,the production of 2 more bicycles:
A)cannot be realized because resources are fully employed
B)costs 1 computer
C)costs 2 computers
D)means that some resources are not fully employed
E)costs 6 computers

Question

Quizplus · Accepted Answer

According to the graph, in order to produce two more bicycles, the society must give up the production of one computer. This is represented by the slope of the production possibility frontier, which shows the opportunity cost of producing more bicycles in terms of computers. The graph also suggests that resources are fully employed at point D, which means that any increase in the production of one good requires a reduction in the production of the other. Therefore, the cost of producing two more bicycles is one computer.

If a Society Is Currently Producing the Combination of Bicycles