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Directions: The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question that follows:

Given the data in table, one moves successively from point A to points B, C, D, E and F. The opportunity cost of guns
  • a)
    increases as more of guns are produced
  • b)
    decreases as more of guns are produced
  • c)
    remains constant as more of guns are produced
  • d)
    cannot be determined
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Directions:The following data gives the production possibilities front...
Opportunity cost refers to amount of a good which is to be sacrificed to produce an additional unit of other good.
here to produce more and more guns , some amount of bread are sacrificed .
from moving from point A to B , (105 - 100) = 5 units of bread is sacrificed .
then from point B to C , (100-90) = 10 , similarly 15 , 20 and so on more and more units of bread is sacrificed only to produce more guns.
The amount of bread sacrificed , 5 , 10 , 15 and so on..is the opportunity cost of producing more guns .

so answer is (A)
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Directions:The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question that follows:Given the data in table, one moves successively from point A to points B, C, D, E and F. The opportunity cost of gunsa)increases as more of guns are producedb)decreases as more of guns are producedc)remains constant as more of guns are producedd)cannot be determinedCorrect answer is option 'A'. Can you explain this answer?
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Directions:The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question that follows:Given the data in table, one moves successively from point A to points B, C, D, E and F. The opportunity cost of gunsa)increases as more of guns are producedb)decreases as more of guns are producedc)remains constant as more of guns are producedd)cannot be determinedCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Directions:The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question that follows:Given the data in table, one moves successively from point A to points B, C, D, E and F. The opportunity cost of gunsa)increases as more of guns are producedb)decreases as more of guns are producedc)remains constant as more of guns are producedd)cannot be determinedCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions:The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question that follows:Given the data in table, one moves successively from point A to points B, C, D, E and F. The opportunity cost of gunsa)increases as more of guns are producedb)decreases as more of guns are producedc)remains constant as more of guns are producedd)cannot be determinedCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Directions:The following data gives the production possibilities frontier of an economy that produces two types of goods, guns and bread. Read the following table and answer the question that follows:Given the data in table, one moves successively from point A to points B, C, D, E and F. The opportunity cost of gunsa)increases as more of guns are producedb)decreases as more of guns are producedc)remains constant as more of guns are producedd)cannot be determinedCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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