C) the opportunity cost of producing each product is constant.
D) resources are perfectly shiftable between alternative uses.
126) Production possibilities (alternatives)
| A | B | C | D | E | F | |
| Capital goods | 5 | 4 | 3 | 2 | 1 | 0 |
| Consumer goods | 0 | 5 | 9 | 12 | 14 | 15 |
Refer to the above table. If the economy is producing at production alternative C, the opportunity cost of the tenth unit of consumer goods will be:
A) 4 units of capital goods.
B) 2 units of capital goods.
C) 3 units of capital goods.
D) 1/3 of a unit of capital goods.
127) Production possibilities (alternatives)
| A | B | C | D | E | F | |
| Capital goods | 5 | 4 | 3 | 2 | 1 | 0 |
| Consumer goods | 0 | 5 | 9 | 12 | 14 | 15 |
Refer to the above table. For these data the law of increasing opportunity costs is reflected in the fact that:
A) the amount of consumer goods which must be sacrificed to get more capital goods diminishes beyond a point.
B) larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods.
C) the production possibilities data would graph as a straight downsloping line.
D) the economy's resources are presumed not to be scarce.
128) Refer to the table below. In moving from possibility A to F, the cost of a unit of steel in terms of a unit of wheat:
(The following economy produces two products.)
Production Possibilities
(The following economy produces two products.)
Production Possibilities
| Product | A | B | C | D | E | F |
| Steel | 0 | 1 | 2 | 3 | 4 | 5 |
| Wheat | 100 | 90 | 75 | 55 | 30 | 0 |