When Operating on Its PPF, a Country Can Produce 2

question 373

Multiple Choice

When operating on its PPF, a country can produce 2 tons of butter and 200 cars OR 3 tons of butter and 150 cars. The opportunity cost of 1 ton of butter is _ _ cars per ton of butter.

• A) 200
• B) 50
• C) 0.75
• D) 300

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes, often leading to rapid judgements or problem-solving strategies.

Displacement

A defense mechanism where mind shifts emotional impulses from a real object to a safer substitute target.

Productivity

Productivity refers to the measure of efficiency of a person, machine, factory, or system in converting inputs into useful outputs.

Own Language

The unique linguistic system developed and understood by specific individuals or groups, often seen in twins.