Table 12 Shows the Hypothetical Trade-Off Between Different Combinations of Stealth

question 123

Multiple Choice

Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity,ceteris paribus. Table 1.2
Production Possibilities for Bombers
$$\begin{array} { | l | c | c | c | c | } \hline \text { Combination } & \begin{array} { c } \text { Number of B- } \\1 \text { Bombers }\end{array} & \begin{array} { c } \text { Opportunity } \\\text { cost(Foregone } \\\text { Stealth) }\end{array} & \begin{array} { c } \text { Number of } \\\text { Stealth Bombers }\end{array} & \begin{array} { c } \text { Opportunity cost } \\\text { (Foregone B-1) }\end{array} \\\hline \text { A } & 20 & \mathrm { NA} & 195 & \\\hline \mathrm { B } & 35 & & 180 & \\\hline \mathrm { C } & 45 & & 150 & \\\hline \mathrm { D } & 50 & & 100 & \text { NA } \\\hline\end{array}$$ On the basis Table 1.2,if the economy is currently producing at point C,what is the opportunity cost of producing at point B?

• A)45 B-1 bombers.
• B)35 Stealth bombers.
• C)180 Stealth bombers.
• D)10 B-1 bombers.

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Definitions:

Budget

An estimate of income and expenditure for a set period of time, often used as a plan for managing finances.