The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 11

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X.
FIGURE 1- 4
-Refer to Figure 1- 4.At point B,

• A)the opportunity cost of producing an extra unit of consumer goods is higher than at point A.
• B)the price of consumer goods is equal to the price of capital goods.
• C)the opportunity cost of producing an extra unit of capital goods is higher than at point A.
• D)the price of capital goods is higher than the price of consumer goods.
• E)Country X is producing too many consumer goods and too few capital goods.

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Definitions:

Plant Assignments

The allocation of production tasks or operations to specific manufacturing plants or facilities based on factors like capacity, specialization, and location.

Regional Centers

Designated areas that focus on the development and economic growth within a specific region, often fostering business and investment opportunities.

Facility Decisions

Choices related to the operation, location, and physical assets of a business that directly impact its capacity and capability to produce goods or services.

Long-term Consequences

Outputs or effects that manifest or are felt over an extended period, often as a result of earlier actions or decisions.