Suppose One Unit of Labour Can Produce Either 5 Wool

question 34

Multiple Choice

Suppose one unit of labour can produce either 5 wool sweaters or 2 pineapples.What is the opportunity cost of producing one wool sweater?

• A)5 pineapples
• B)2 pineapples
• C)2/5 of a pineapple
• D)5/2 pineapples
• E)zero pineapples

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Definitions:

Unemployment

The situation where individuals who are capable of working and willing to work do not find employment.

Opportunity Costs

The cost of the next best alternative foregone as a result of making a decision.

Scarce Resources

Essential goods and services that are limited in supply relative to demand, necessitating allocation and economical usage.

Macroeconomics Question

A question that relates to the study and analysis of the economy as a whole, including issues like inflation, unemployment, and economic growth.