Figure 2.1 -On the Production Possibilities Curve in Figure 2.1 the Gain

question 93

Multiple Choice

Figure 2.1
-On the production possibilities curve in Figure 2.1 the gain from decreasing manufacturing production from 500 tons to 300 tons is:

• A)700 tons of agriculture.
• B)500 tons of agriculture.
• C)200 tons of agriculture.
• D)100 tons of agriculture.

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Definitions:

Real Wage

Real wage refers to the purchasing power of wages, taking into account the effects of inflation or deflation. It represents how much goods and services wages can actually buy.

Opportunity Cost

Choosing one path results in the loss of potential benefits that could have been gained from other paths.

German Car

Refers to automobiles manufactured in Germany, known for their engineering, performance, and quality.

Specialization

The process of focusing resources on the production of specific goods or services to increase efficiency and output.