FIGURE 2-2 -Refer to Figure 2-2. Which of the Following Statements Best

Multiple Choice

FIGURE 2-2

-Refer to Figure 2-2. Which of the following statements best describes the opportunity cost of producing an additional cake?

A) It increases as the economy moves in a southeast direction along the production possibilities curve.
B) It decreases as the economy moves in a southeast direction along the production possibilities curve.
C) It remains constant as the economy moves in a southeast direction along the production possibilities curve.
D) It equals zero.