Please read each question carefully before answering. All except 2 are multiple choice. Good Luck! PP, PP PP, Consumer Goods 1. Refer to the above diagram. The concept of opportunity cost is best represented by the: A. shift of the production possibilities curve from PP, to PPa. B. move from B on PP, to E on PPs. C. move from A on PP, to Bon PPI. D. move from D inside PPi to B on PPi- 2. Refer to the above diagram. Which one of the following would shift the production possibilities curve from PPs to PP? A. increase in labor productivity B. a reduction in the labor supply C. an increase in consumer prices D. a reduction in hourly wages Capital Goods