-As Output Moves from Point a to Point B to Point

question 376

Multiple Choice

-As output moves from point a to point b to point c along the PPF in the above figure, the opportunity cost of one more unit of good X

• A) rises. The opportunity cost of one more unit of good Y also rises.
• B) rises. The opportunity cost of one more unit of good Y falls.
• C) falls. The opportunity cost of one more unit of good Y rises.
• D) falls. The opportunity cost of one more unit of good Y also falls.

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Definitions:

Downward Counterfactual

Thinking about how a situation could have been worse, often leading to feelings of relief or contentment.

Upward Counterfactual

An imagined alternative in which the outcome is better than what actually happened.

Misinformation Effect

The phenomenon where people's memories of an event can be influenced by incorrect information presented after the event, leading to false recollections.

Priming

The process by which exposure to a stimulus in the environment increases the salience of a schema.