A) increases.
B) decreases.
C) remains constant.
D) increases from A to B, and decreases from B to F.
129) A typical concave production possibilities curve implies:
A) that economic resources are scarce.
B) that society must choose among various attainable combinations of goods.
C) increasing opportunity costs.
D) all of these are correct.
130) Refer to the diagram below. This production possibilities curve is constructed such that:
| Product | A | B | C | D | E | F |
| Bread | 0 | 1 | 2 | 3 | 4 | 5 |
| Tractors | 100 | 90 | 75 | 55 | 30 | 0 |
A) resources are presumed to be perfectly shiftable between bread and tractors.
B) the opportunity cost of bread diminishes as more bread is produced.
C) the opportunity cost of tractors diminishes as more bread is produced.
D) the opportunity cost of both bread and tractors in terms of each other increases as more of each is produced.
131) The law of increasing opportunity costs exists because:
A) resources are not equally efficient in producing various goods.
B) the value of the dollar has diminished historically because of persistent inflation.
C) wage rates invariably rise as the economy approaches full employment.
D) consumers tend to value any good more highly when they have little of it.
132) The law of increasing opportunity costs is reflected in a production possibilities curve which is:
A) an upward sloping straight line.
B) a downward sloping straight line.
C) concave to the origin.
D) convex to the origin.
133) The production possibilities curve below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy.
| Production Alternatives | |||||
| Products | A | B | C | D | E |
| Capital goods | 0 | 1 | 2 | 3 | 4 |
| Consumer goods | 22 | 18 | 13 | 7 | 0 |