Exhibit 29-1 -According to the Data in Exhibit 29-1, the Opportunity Cost

question 103

Multiple Choice

Exhibit 29-1
-According to the data in Exhibit 29-1, the opportunity cost of producing one more unit of good A in China is

• A)3 units of good B.
• B)2 units of good B.
• C)5 units of good B.
• D)1/2 unit of good B.
• E)1/3 unit of good B.

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Definitions:

Transfers

Transactions where wealth or income is redistributed from one party to another without any exchange of goods or services, such as grants or social security payments.

Households

Units of one or more persons living together who make joint decisions on consumption, work, and income generation.

Discrimination Coefficient

A measure in economics and social sciences to quantify the degree of discrimination or bias shown towards or against a particular group or individual.

Wage Differential

The difference between the wage received by one worker or group of workers and that received by another worker or group of workers.