Production Possibilities -Based on the Above Table, as the Production of Pizza

question 383

Multiple Choice

Production possibilities
$$\begin{array} { | l | l | l | } \hline \text { Possibility } & \begin{array} { l } \text { Pizza (per } \\\text { hour) }\end{array} & \begin{array} { l } \text { Soda } \\\text { (cases per } \\\text { hour) }\end{array} \\\hline \text { A } & 0 & 100 \\\hline \text { B } & 1 & 95 \\\hline \text { C } & 2 & 80 \\\hline \text { D } & 3 & 60 \\\hline \text { E } & 4 & 35 \\\hline \text { F } & 5 & 0 \\\hline\end{array}$$
-Based on the above table, as the production of pizza increases, the opportunity cost of pizza in terms of forgone cases of soda

• A) initially increases then decreases.
• B) increases.
• C) decreases.
• D) does not change.

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Definitions:

Unemployed

Individuals who are without a job but are actively looking for work and available to start work.

Endogenous

Originating from within a system, referring to factors or variables in economic models that are determined by the dynamics within the model itself, as opposed to external influences.

Business Cycle

The natural rise and fall of economic growth that occurs over time, including periods of expansion, peak, recession, and recovery.

External Shocks

Events outside the economic system that can cause sudden and significant changes within an economy, such as natural disasters or geopolitical events.