Question

The diagram below shows two production possibilities boundaries for Country X. PPB2 A PPB Capital Goods Consumer Goods FIGURE 1-3 38) Refer to Figure 1-3, and assume the country faces PPB). At point B, A) the price of capital goods is higher than the price of consumption goods. B) Country X is producing too many consumption goods and too few capital goods. C) the price of consumption goods is equal to the price of capital goods. D) the opportunity cost of producing an extra unit of capital goods is higher than at point A. E) the opportunity cost of producing an extra unit of consumption goods is higher than at point A.