Refer to the production possibilities frontier in the graph. More of good X must be given up per unit of good Y gained when moving from point b to point a than when moving from point c to point b. This fact:}
A) illustrates decreasing opportunity cost.
B) indicates that good X is more capital intensive than good Y.
C) illustrates increasing opportunity cost.
D) indicates that good Y is more capital intensive than good X.
Answer: C