Figure 1-7 Shows the Production Possibilities Boundary for an Economy

question 42

Multiple Choice

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods-cotton and bananas. FIGURE 1-7 Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods-cotton and bananas,both measured in tonnes produced per year.Which of the following statements best describes the difference in opportunity costs that this economy faces at point A compared to point E?

• A)The opportunity cost is 1500 tonnes of cotton at point A,compared to 500 tonnes at point E.
• B)The opportunity cost is 500 tonnes of cotton at point A,compared to 1500 tonnes at point E.
• C)The opportunity cost of producing an extra tonne of bananas is much higher at point A than at point E.
• D)The opportunity cost of producing an extra tonne of bananas is much lower at point A than at point E.
• E)The opportunity cost of producing an extra tonne of bananas is the same at point A as at point E.

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Definitions:

Shell-Type

Referring to a design of transformer or other electromagnetic device where the windings are surrounded by a magnetic core, enhancing efficiency and concentrating the magnetic field.

Tape-Wound

A type of magnetic core construction method where thin strips of magnetic material are wound into a coil to reduce eddy currents and increase magnetic efficiency.

Toroid

A doughnut-shaped component used in magnetic circuits, with a coil of wire wrapped around a ferromagnetic core to concentrate magnetic fields.

Tape-Wound Core

A core made by winding a continuous length of magnetic metal into a spiral.