If a Country Produces Good Y (Measured on the Vertical

question 35

Multiple Choice

If a country produces good Y (measured on the vertical axis) and good X (measured on the horizontal axis) , then the absolute value of the slope of its production possibility frontier is equal to

• A) the opportunity cost of good X.
• B) the price of good X divided by the price of good Y.
• C) the price of good Y divided by the price of good X.
• D) the opportunity cost of good Y.
• E) the cost of capital (assuming that good Y is capital intensive) divided by the cost of labor.

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Definitions:

Autokinetic Experiment

A psychological experiment where a stationary point of light in a dark room appears to move because of small eye movements, illustrating the effect of suggestion or social influence on beliefs.

Frame of Reference

A system of values or beliefs against which judgments are made or a context through which a situation can be viewed.

Polarised

A situation or condition that causes division, leading to two distinctly opposed groups or perspectives.

More Extreme

The phenomenon where group discussions lead to decisions and opinions that are more extreme than the initial positions of the members.