Refer to the Diagram Below

question 240

Multiple Choice

Refer to the diagram below.Points A, B, C, D, and E show:

• A)that the opportunity cost of bicycles increases, while that of computers is constant.
• B)combinations of bicycles and computers which society can produce by using its resources efficiently.
• C)that the opportunity cost of computers increases, while that of bicycles is constant.
• D)that society's demand for computers is greater than its demand for bicycles.

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Definitions:

Quantity and Quality

Refers to the amount and the standard of a product or service, indicating its overall value or suitability.

Coincidence of Wants

A situation in a barter system where two parties each have something the other wants, facilitating an exchange without the need for money.

Total Output

The total quantity of goods and services produced by an economy, sector, or individual producer over a specified period.

Coincidence-of-Wants Problem

Refers to the difficulty in barter transactions where each party needs to have what the other wants and be willing to trade for it simultaneously.