Use the following to answer questions:
-(Table: Production Possibilities Schedule II) Look at the table Production Possibilities Schedule II. If the economy is producing at alternative X, the opportunity cost of producing at Y instead of X is _____ units of consumer goods per period.
A)0
B)6
C)8
D)14

Question

Use the following to answer questions: 
-(Table: Production Possibilities Schedule II) Look at the table Production Possibilities Schedule II. If the economy is producing at alternative X, the opportunity cost of producing at Y instead of X is _____ units of consumer goods per period.
A)0 
B)6 
C)8 
D)14

Quizplus · Accepted Answer

To find the opportunity cost of producing at Y instead of X, we need to look at the difference in the number of consumer goods produced when shifting from X to Y. Moving from X to Y would require producing 6 fewer units of capital goods but producing 6 more units of consumer goods. Therefore, the opportunity cost of producing at Y instead of X is 6 units of consumer goods per period. Therefore, the best choice is B.

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