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

question 32

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:

Hierarchy Of Needs

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Unique

Being the only one of its kind; unlike anything else, often used to describe individuals, ideas, or items that stand out due to their distinctive qualities.

Adulthood Responsibilities

The duties and obligations that are typically expected of an individual upon reaching adulthood, including financial independence, employment, and possibly starting a family.

Stagnant

Showing no activity; dull and inactive, often used to describe water or air that lacks movement and growth.