Asked by Adriana Vander Heyden on Apr 30, 2024
Verified
The fact that the slope of the production possibilities curve becomes steeper as we move down along the curve indicates that:
A) the principle of increasing opportunity costs is relevant.
B) society's resources are limited.
C) the opportunity cost of producing each product is constant.
D) resources are perfectly shiftable between alternative uses.
Opportunity Costs
The cost of choosing one alternative over others, representing the benefits an individual, investor, or business misses out on when choosing one option over another.
Resource Shiftability
The flexibility with which resources can be shifted from producing one product to another in response to changing market demands.
- Identify the manifestation of increasing opportunity costs in the silhouette of the production possibilities curve.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
A
Explanation :
The principle of increasing opportunity costs states that as we produce more of one good, the opportunity cost of producing that good increases as resources are shifted away from producing the other good. This leads to a steeper slope of the production possibilities curve, which is evident as we move down along the curve.
Learning Objectives
- Identify the manifestation of increasing opportunity costs in the silhouette of the production possibilities curve.