Exhibit 2-15 Production possibilities curve
In Exhibit 2-15, evidence of the law of increasing opportunity costs is:
A. to get the first 10 capital goods, economy has to give up 2 consumption goods but to get the next 10 capital goods, the economy has to give up 8 consumption goods.
B. the downward slope of the production possibilities curve.
C. the amount of capital goods increases by 10 units as the economy moves from point J to point K to point L to point M to point N.
D. the amount of capital goods increases by 10 units as the economy moves from point L to point G.
Answer: A
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