-Agnes Can Produce Either 1 Unit of X or 1

question 425

Multiple Choice

-Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. The opportunity cost of producing a unit of Y is

• A) 1 unit of X per unit of Y for Agnes and 2 units of X per unit of Y for Brenda.
• B) 1 unit of X per unit of Y for Agnes and 1/2 unit of X per unit of Y for Brenda.
• C) 1 hour for Agnes and 1/2 hour for Brenda.
• D) 1 hour for Agnes and 2 hours for Brenda.

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Definitions:

Capital

In economic terms, refers to wealth in the form of money or other assets owned by a person or organization or available for purposes such as starting a company or investing.

Commodities

Goods or services that are traded, often produced to satisfy wants or needs.

Class-in-Itself

A term referring to a social class that shares common economic interests, but may not be united or aware of their shared circumstances or potential for collective action.

Economic Position

An individual's or group's status or rank in the economic hierarchy, determined by wealth, occupation, education, and income.