(Table) the Table Shows the Production Possibilities Schedule for Guns

question 230

Multiple Choice

(Table) The table shows the production possibilities schedule for guns and butter. The opportunity cost of increasing gun production from 100 units to 200 units is: $$\begin{array} { l l c c c c c c } \text { Guns (hundreds) } & 6 & 5 & 4 & 3 & 2 & 1 & 0 \\\text { Butter (tons) } & 0 & 5 & 10 & 15 & 20 & 25 & 30\end{array}$$

• A) 0 tons of butter.
• B) 5 tons of butter.
• C) 10 tons of butter.
• D) 15 tons of butter.

---

Definitions:

Wool Production

The process of breeding, raising, and shearing sheep to obtain wool, a natural fiber used in textiles.

Elasticity Of Demand

An indicator of the degree to which demand for a product is affected by variations in its price, reflecting the responsiveness of the quantity demanded to price fluctuations.

Cigarettes

Narrow cylinders of finely cut tobacco rolled in paper for smoking, often containing a filter at one end.

Tax

A mandatory monetary fee or different kind of tax levied on individuals by a state entity with the purpose of raising funds for government operations and public projects.