As We Increase the Production of X, We Find We

Question 37
Multiple Choice

As we increase the production of X, we find we must give up larger and larger amounts of Y per unit of X. Select the best statement. A)This illustrates increasing opportunity cost. B)As a result, we should not specialize in the production of X. C)The production possibilities frontier for X and Y is a straight line. D)Good Y will be more highly regarded by consumers than good X. E)We must be producing inside the production possibilities frontier.