QUESTION $7$

v

$($a$)$ resources are specialized.

$($b$)$ opportunity costs increase as production of either product increases.

$($c$)$ resources are not specialized.

$($d$)$ both $($a$)$ and $($b$)$ are correct.

QUESTION $8$

Given the PPF curve in figure $A,$ what is the opportunity cost of $Y$ in terms of $x$ as production moves from point b to point a$?$

$($a$)5$ units of $Y$ for each unit of $x.$

$($b$)2$ units of $x$ for each unit of $Y.$

c$)$ None of the above.

$($d$)10.$

$($e$)$ $$5.$