-The Above Table Shows Production Points on Sweet-Tooth Land?s Production

question 252

Multiple Choice

$$\begin{array} { | l | l | l | } \hline \text { Point } & \begin{array} { l } \text { Production } \\\text { chocolate } \\\text { bars }\end{array} & \begin{array} { l } \text { Production } \\\text { cans of cola }\end{array} \\\hline \text { A } & 0 & 100 \\\hline \text { B } & 10 & 90 \\\hline \text { C } & 20 & 70 \\\hline \text { D } & 30 & 40 \\\hline \text { E } & 40 & 0 \\\hline\end{array}$$
-The above table shows production points on Sweet-Tooth Land?s production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D?

• A) 1/3 can of cola per chocolate bar
• B) 30 cans of cola per chocolate bar
• C) 10 cans of cola per chocolate bar
• D) 3 cans of cola per chocolate bar

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Definitions:

Buying Power

The amount of goods or services that can be purchased with a unit of currency.

Flexible Exchange Rates

A currency system where the price of a country's currency is set by the forex market based on supply and demand relative to other currencies.

Macroeconomic Instability

Occurs when an economy experiences high levels of volatility in factors such as inflation, growth rates, and unemployment, often leading to economic downturns.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, promoting trading benefits.