Table 13 Shows the Hypothetical Trade-Off Between Different Combinations of Brushes

question 46

Multiple Choice

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs. On the basis of your calculations in Table 1.3
-what is the opportunity cost of producing at point M rather than point N?

• A)23 combs.
• B)21 combs.
• C)1 brush.
• D)2 brushes.

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Definitions:

Open Market Securities

Financial instruments such as bonds or stocks that are traded freely on the open market and can be bought and sold by investors.

Fed

Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.

Business Investment

The act of allocating resources, usually in the form of capital, to create, expand, or improve a business's assets.

Required Reserves

The minimum amount of funds that a bank or depository institution must hold in reserve against specified deposit liabilities.