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.

---

Definitions:

Omission

A failure to include or do something, often leading to a lack or gap in information or action.

Group Work

Cooperative effort by members of a group to achieve a common goal, often used in educational and professional contexts.

Casework

A social work practice where individual cases are examined in detail to provide appropriate assistance and interventions.

Problem Solving

The process of identifying a problem, developing possible solution paths, and taking the appropriate course of action.