The Following Diagrams Show the Production Possibilities Boundaries for Austria

question 36

Multiple Choice

The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes. FIGURE 32-2
-Refer to Figure 32-2.The diagrams illustrate that the ________ is lower in Austria than in Switzerland.

• A)opportunity cost of producing shoes
• B)opportunity cost of producing bicycles
• C)total cost of producing shoes
• D)average cost of producing bicycles
• E)comparative advantage in producing bicycles

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Definitions:

Rural Area

A geographic area characterized by low population density and vast open spaces, often associated with farming or undeveloped land.

Reserve Army Of Labour

The reserve army of labour refers to a pool of unemployed or underemployed workers who can be quickly mobilized to meet labor needs, influencing wage levels and conditions within the capitalist system.

Profitability Of Capital

A measure of how effectively capital is used to generate profit, important for assessing the financial performance of businesses.

Economic-Organization Explanation

A rationale that describes phenomena or behaviors based on the structure and function of economic entities and their organizational contexts.