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Consider the Production Possibilities Frontier in Figure 2

Question 72

Multiple Choice

Consider the production possibilities frontier in Figure 2.1.2.Which of the following statements is false?


A) Resources are not equally useful in the production of X and Y.
B) Points inside the production possibilities frontier indicate wasted or misallocated resources.
C) Production at point A shifts 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.

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