Figure 1-7 Shows the Production Possibilities Boundary for an Economy

question 112

Multiple Choice

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods - cotton and bananas. FIGURE 1-7
-Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods - cotton and bananas,both measured in tonnes produced per year.Suppose this economy is currently producing 1280 tonnes of cotton and 200 tonnes of bananas.What is the opportunity cost of increasing production of bananas by 100 tonnes?

• A)100 tonnes of cotton
• B)360 tonnes of cotton
• C)360 tonnes of bananas
• D)920 tonnes of cotton
• E)there is no opportunity cost

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