When moving along a production possibilities curve, the opportunity cost to society of getting more of the good on the horizontal axis:
A) is constant.
B) is measured in dollar terms.
C) is measured by the amount of the other good that must be given up.
D) usually decreases.

Question

Quizplus · Accepted Answer

The opportunity cost of getting more of the good on the horizontal axis is measured by the amount of the other good that must be given up, as stated in option C. This is because the production possibilities curve illustrates the tradeoffs between producing two goods; to produce more of one good, society must give up the opportunity to produce some amount of the other good. Therefore, the opportunity cost of getting more of the good on the horizontal axis will increase as society produces more of it, resulting in a movement along the production possibilities curve.

When Moving Along a Production Possibilities Curve, the Opportunity Cost