Question

1. analyze the accompanying production possibilities curve. what happens to the production of computers as the production of automobiles increases?○ the production of computers decreases as the production of automobiles increases.○ the production of computers is not affected as the production of automobiles increases.○ the production of computers is not affected as the production of automobiles decreases.

Explanation:

The production possibilities curve shows trade-offs between two goods. As we move along the curve from point A to B to C to D, the quantity of automobiles produced increases (rightward on the x-axis), while the quantity of computers produced decreases (downward on the y-axis). This reflects the opportunity cost of producing more of one good: resources are shifted from computer production to automobile production, so computer output falls.

Answer:

The production of computers decreases as the production of automobiles increases.