Use the table below to answer the following questions.
Table 2.1.1
The following table gives points on the production possibilities frontier for goods X and Y.
-The economy illustrated by the data in Table 2.1.1 exhibits
A)constant opportunity cost in the production of X.
B)increasing opportunity cost.
C)constant opportunity cost in the production of Y.
D)initially increasing, then decreasing opportunity cost.
E)decreasing opportunity cost.

Question

Use the table below to answer the following questions.
Table 2.1.1
The following table gives points on the production possibilities frontier for goods X and Y. 
-The economy illustrated by the data in Table 2.1.1 exhibits
A)constant opportunity cost in the production of X. 
B)increasing opportunity cost. 
C)constant opportunity cost in the production of Y. 
D)initially increasing, then decreasing opportunity cost. 
E)decreasing opportunity cost.

Quizplus · Accepted Answer

Increasing opportunity cost is indicated when the amount of one good that must be given up to produce more of another good increases. This is a common characteristic in economies due to the reallocation of resources that are not equally efficient in producing all goods.

Use the Table Below to Answer the Following Questions