5. Remember that the slope of the PPF is the opportunity cost of one good in terms of the other, in this case of boats in terms of cars. While this isn't a trick question, it is a little tricky. The answer is B is because at point B the opportunity cost is zero. Since not all resources are being used at B, both more boats and more cars can be produced without giving up either. These points are shown as the the shaded area to the right.

  If we had been only considering points along the PPF the answer would be D. At D the PPF is very steep and more boats can be produced without having to give up many cars. At point A the cost of boats in terms of cars is very high.

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