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

question 56

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
$$\begin{array} { | l | c | c | c | c | } \hline \text { Combination } & \begin{array} { c } \text { Number of B- } \\1 \text { Bombers }\end{array} & \begin{array} { c } \text { Opportunity } \\\text { cost(Foregone } \\\text { Stealth) }\end{array} & \begin{array} { c } \text { Number of } \\\text { Stealth Bombers }\end{array} & \begin{array} { c } \text { Opportunity cost } \\\text { (Foregone B-1) }\end{array} \\\hline \text { A } & 20 & \text { NA } & 195 & \\\hline \text { B } & 35 & & 180 & \\\hline \text { C } & 45 & & 150 &\\\hline \text { D } & 50 & & 100 & \text { NA } \\\hline\end{array}$$ The lowest opportunity cost in Table 1.2 for Stealth Bombers is

• A)4 B-1 bombers
• B)3 B-1 bombers
• C)2 B-1 bombers
• D)10 B-1 bombers

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Definitions:

Compounded Monthly

The method of calculating interest where the earned interest is added to the principal balance each month.

End-of-month Payments

Payments made at the end of each month, often used in billing cycles or loan agreements.

Car Loan

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Compounded Semi-annually

A method of calculating interest where it is added to the principal amount twice a year, leading to interest on interest.