Exhibit 2-8 Production possibilities curve data
A
B
C
D
E
F
Capital goods15
14
12
9
5
0
Consumer goods 0
2
4
6
8
10
As shown in Exhibit 2-8, the concept of increasing opportunity costs is reflected in the fact that:
A. the quantity of consumer goods produced can never be zero.
B. the labor force in the economy is homogeneous.
C. greater amounts of capital goods must be sacrificed to produce an additional 2 units of consumer goods.
D. a graph of the production data is a downward-sloping straight line.
Answer: C
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