Multiple Choice
Use the figure below to answer the following questions.
Figure 2.1.2
-Consider the production possibilities frontier in Figure 2.1.2. Which of the following statements is false?
A) Resources are not equally useful in all activities.
B) Points inside the production possibilities frontier indicate unused or misallocated resources.
C) Starting at point A, an increase in the production of Y will shift the production possibilities frontier outward.
D) The opportunity cost of producing Y increases as production of Y increases.
E) The opportunity cost of producing X increases as production of X increases.
Correct Answer:

Verified
Correct Answer:
Verified
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