-Refer to the Production Possibilities Frontier in the Figure Above

Multiple Choice

-Refer to the production possibilities frontier in the figure above. More of good X must be given up per unit of good Y gained when moving from point b to point a than when moving from point c to point b. This fact

A) illustrates decreasing opportunity cost.
B) illustrates increasing opportunity cost.
C) indicates that good X is more capital intensive than good Y.
D) indicates that good Y is more capital intensive than good X.