Choose the Correct Statements

question 113

Multiple Choice

Choose the correct statements. 1.Opportunity cost of a good is the increase in the quantity produced of one good divided by the decrease in the quantity produced of another good as we move along the PPF.
2.The opportunity cost of an action is the highest-valued alternative forgone.
3.Opportunity cost is a ratio.
4.There is no relationship between the opportunity cost of producing an additional good measured on the x-axis and the opportunity cost of producing an additional good measured on the y-axis.

• A)Statements 1 and 3 are correct.
• B)Statements 1 and 2 are correct.
• C)Statements 2 and 3 are correct.
• D)Statements 2 and 4 are correct.
• E)Statements 3 and 4 are correct.

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Definitions:

Demand for Bottled Water

Refers to the consumer need or desire to purchase bottled water, influenced by factors like health concerns, convenience, and taste preferences.

Substitute Product

A product that can be used in place of another, fulfilling the same needs or desires.

Chicken Prices

The market value or cost of chicken, which can fluctuate based on factors like demand, feed prices, and production costs.

Price of Beef

The cost at which beef is sold in the market, which can vary based on factors like quality, supply, and demand.