8. The shape of the production possibilities curve in the figure above indicates

ID: 1188242 • Letter: 8

Question

A) production of corn is characterized by increasing costs while the production of cloth is characterized by decreasing costs.

B) production of both corn and cloth is characterized by increasing costs.

C) production of both corn and cloth is characterized by decreasing costs.

D) production of corn is characterized by constant costs and the production of cloth is characterized by increasing costs.

9. Which of the following would NOT allow society to move to point h in the figure above?

A) an improvement in technology.

B) more efficient use of current resources.

C) an increase in quantity of labor.

D) an increase in quantity of capital.

10. Between points b and c in the figure above, the opportunity cost of another bushel of corn is

A) .8 yards of cloth.

B) 1.25 yards of cloth.

C) 1.5 yards of cloth.

D) 2.5 yards of cloth.

B) production of both corn and cloth is characterized by increasing (opportunity) costs.

B) more efficient use of current resources.

A) .8 yards of cloth.

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