Use the Following to Answer Question

question 20

Multiple Choice

Use the following to answer question:

-(Figure: Production Possibility Frontier) Use Figure: Production Possibilities Frontier.Points A,B,E,and F:

• A)indicate combinations of cars and computers that society can produce using all of its resources efficiently.
• B)show that the opportunity cost of cars increases as more cars are produced but that of more computers decreases as more computers are produced.
• C)indicate that society wants computers more than cars.
• D)indicate constant opportunity costs for cars and increasing opportunity costs for computers.

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Definitions:

American Wheat

A term referring to wheat produced in the United States, which is a major global exporter of the grain.

Euro

Nineteen of the twenty-seven member states in the European Union use a standard currency, often called the eurozone.

Balance-Of-Payment

A record of all financial transactions made between a country and the rest of the world within a specific period.

Deficits

The amount by which a government's expenditures exceed its revenue.