In a Certain Country It Takes Five of Its 10

question 187

True/False

In a certain country it takes five of its 10 workers to produce one barrel of wine but only one worker to produce one yard of cloth. If we graphed this country's PPF (placing wine on the vertical axis and cloth on the horizontal axis), the slope of the PPF would equal -1/5.

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Definitions:

Total Variable Cost

The total of expenses that vary directly with the level of production or output.

Marginal Cost

The increment in expense for generating an additional unit of a product or service.

Swords

Edged weapons, longer than a knife or dagger, used historically in warfare or personal combat for cutting or thrusting.

Total Variable Cost

The sum of all costs that vary with output level in the production of goods or services, including materials and labor.