-Refer to the table above, which gives five points on a nation's PPF. As we increase the production of
X,
A) unemployment increases.
B) the opportunity cost of each new unit of X increases.
C) the output of Y increases.
D) the opportunity cost of each new unit of X decreases.

Question

-Refer to the table above, which gives five points on a nation's PPF. As we increase the production of
X,
A) unemployment increases. 
B) the opportunity cost of each new unit of X increases. 
C) the output of Y increases. 
D) the opportunity cost of each new unit of X decreases.

Quizplus · Accepted Answer

As production of X increases along a PPF, resources are reallocated from producing Y to X, leading to increasing opportunity costs due to the law of increasing opportunity costs.

-Refer to the Table Above, Which Gives Five Points on a Nation's