Exhibit 2-2 Production Possibilities Curve

question 141

Multiple Choice

Exhibit 2-2 Production possibilities curve
-In Exhibit 2-2, the opportunity cost of coffee when moving from A to B is:

• A) the same as moving from A to C.
• B) the same as moving from A to D.
• C) the same as moving from B to D.
• D) the same as moving from B to C.
• E) it is not possible to determine.

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Definitions:

George Bush

Refers to either George H.W. Bush, the 41st President of the United States (1989-1993), or his son George W. Bush, the 43rd President of the United States (2001-2009), each having made lasting impacts on American and international politics.

Crowding-in

An economic phenomenon where increased government spending leads to higher private sector investment.

Crowding-out

A situation where increased public sector spending reduces the amount of available funds for private sector investments.

National Debt

The total amount of money that a country's government has borrowed, typically as a result of deficit spending, and yet to repay.