The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 84

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3
-Refer to Figure 1- 3. At point B,

• A) the opportunity cost of producing an extra unit of consumption goods is higher than at point A.
• B) the price of capital goods is higher than the price of consumption goods.
• C) the opportunity cost of producing an extra unit of capital goods is higher than at point A.
• D) Country X is producing too many consumption goods and too few capital goods.
• E) the price of consumption goods is equal to the price of capital goods.

---

Definitions:

Hospital Cafeteria

A dining area within a hospital that provides meals and snacks to patients, visitors, and staff, often catering to a variety of dietary needs.

Pampered Chef

A multi-level marketing company that sells kitchen tools, food products, and cookbooks for home cooking and entertaining.

Direct Selling

A marketing strategy in which goods are sold directly to customers, avoiding conventional retail settings.

Wholesale Selling

The act of selling goods in large quantities at lower prices to retailers or other merchants, who then sell to end consumers.