The Production Possibilities Curve Below Shows the Hypothetical Relationship Between

question 124

Multiple Choice

The production possibilities curve below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy. Refer to the above table.What is the total opportunity cost of producing two units of capital goods?

• A)4 units of consumer goods
• B)5 units of consumer goods
• C)9 units of consumer goods
• D)13 units of consumer goods

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that allow individuals to make decisions quickly and efficiently, but sometimes at the cost of accuracy.

Group

A number of individuals or things considered together because of similarities or a common purpose.

Team

A group of people brought together to use their individual skills on a common project or goal.

Job Sharing

An employment option in which one full-time job is divided among two or more people according to predetermined hours