B) increases as one moves southeast along the curve.
C) is constant as one moves down the curve.
D) decreases as one moves southeast along the curve.
112) The production possibilities curve has:
A) a positive slope which increases as we move along it from left to right.
B) a negative slope which increases as we move along it from left to right.
C) a negative slope which decreases as we move along it from left to right.
D) a negative slope which is constant as we move along it from left to right.
113) The law of increasing opportunity costs states that:
A) if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of other goods to do so.
B) the sum of the costs of producing a particular good cannot rise above the current market price of that good.
C) if the sum of the costs of producing a particular good rises by a specified percent, the price of that good must rise by a greater relative amount.
D) if the prices of all the resources devoted to the production of goods increase, the cost of producing any particular good will increase at the same rate.
114) 
Refer to the above diagram. This production possibilities curve is:
Refer to the above diagram. This production possibilities curve is:
A) convex to the origin because opportunity costs are constant.
B) linear because opportunity costs are constant.
C) concave to the origin because of increasing opportunity costs.
D) convex to the origin because of increasing opportunity costs.
115) 
Refer to the above diagram. If society is currently producing 9 units of bicycles and 4 units of computers and it now decides to increase computer output to 6, the cost:
Refer to the above diagram. If society is currently producing 9 units of bicycles and 4 units of computers and it now decides to increase computer output to 6, the cost:
A) will be 4 units of bicycles.
B) will be 2 units of bicycles.
C) will be zero because unemployed resources are available.
D) of doing so cannot be determined from the information given.
116) The concept of opportunity cost:
A) is irrelevant in socialistic economies because of central planning.
B) suggests that the use of resources in any particular line of production means that alternative outputs must be forgone.
C) is irrelevant if the production possibilities curve is shifting to the right.
D) suggests that insatiable wants can be fulfilled.
117) Which of the following is not an illustration of the idea of opportunity cost?
A) A growing economy can produce more consumer goods and more capital goods at the same time.