Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus. Table 1.2
Production Possibilities for Bombers
$$\begin{array} { | l | c | c | c | c | }
\hline \text { Combination } & \begin{array} { c }
\text { Number of B- } \
1 \text { Bombers }
\end{array} & \begin{array} { c }
\text { Opportunity } \
\text { cost(Foregone } \
\text { Stealth) }
\end{array} & \begin{array} { c }
\text { Number of } \
\text { Stealth Bombers }
\end{array} & \begin{array} { c }
\text { Opportunity cost } \
\text { (Foregone B-1) }
\end{array} \
\hline \text { A } & 20 & \mathrm { NA } & 195 & \
\hline \mathrm { B } & 35 & & 180 & \
\hline \mathrm { C } & 45 & & 150 & \
\hline \mathrm { D } & 50 & & 100 & \text { NA } \
\hline
\end{array}$$ On the basis of Table 1.2,the law of increasing opportunity costs applies to
A)Both B-1 bombers and Stealth bombers.
B)B-1 bombers.
C)Stealth bombers but not to B-1 bombers.
D)Neither bomber.

Question

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus. Table 1.2
Production Possibilities for Bombers
$$\begin{array} { | l | c | c | c | c | } 
\hline \text { Combination } & \begin{array} { c } 
\text { Number of B- } \
1 \text { Bombers }
\end{array} & \begin{array} { c } 
\text { Opportunity } \
\text { cost(Foregone } \
\text { Stealth) }
\end{array} & \begin{array} { c } 
\text { Number of } \
\text { Stealth Bombers }
\end{array} & \begin{array} { c } 
\text { Opportunity cost } \
\text { (Foregone B-1) }
\end{array} \
\hline \text { A } & 20 & \mathrm { NA } & 195 & \
\hline \mathrm { B } & 35 & & 180 & \
\hline \mathrm { C } & 45 & & 150 & \
\hline \mathrm { D } & 50 & & 100 & \text { NA } \
\hline
\end{array}$$ On the basis of Table 1.2,the law of increasing opportunity costs applies to
A)Both B-1 bombers and Stealth bombers.
B)B-1 bombers.
C)Stealth bombers but not to B-1 bombers.
D)Neither bomber.

Quizplus · Accepted Answer

The law of increasing opportunity costs is demonstrated as the production shifts from one type of bomber to another, indicating that to produce more of one type of bomber, increasingly larger quantities of the other type must be sacrificed. This is implied by the changing opportunity costs for producing additional units of each type of bomber, which is a fundamental aspect of the law of increasing opportunity costs.

Table 12 Shows the Hypothetical Trade-Off Between Different Combinations of Stealth