-As Output Moves from Point a to Point B to Point

question 252

Multiple Choice

-As output moves from point a to point b to point c along the PPF in the above figure, the opportunity cost of one more unit of good X

• A) rises. The opportunity cost of one more unit of good Y also rises.
• B) rises. The opportunity cost of one more unit of good Y falls.
• C) falls. The opportunity cost of one more unit of good Y also falls.
• D) falls. The opportunity cost of one more unit of good Y rises.

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Definitions:

Economic Project

An undertaking, often with a definable objective, time frame, and set of resources, designed to achieve specific economic outcomes.

Coase Theorem

The idea, first stated by economist Ronald Coase, that some externalities can be resolved through private negotiations among the affected parties.

Nonrivalry

A characteristic of some goods where one person's consumption does not diminish the ability of others to consume the same good.

Nonexcludability

A characteristic of certain goods or services where it is not feasible to exclude individuals from using the good or service, regardless of whether they have paid for it.