If the United States, at the Point Where It Is

question 172

Multiple Choice

If the United States, at the point where it is currently producing, must give up the production of 500 bicycles (B) to produce 20 additional tractors (T) with the same resources, its opportunity cost may be expressed as:

• A) 1/25B = 1T.
• B) 1B = 1/25T.
• C) 1B = 1T.
• D) 1B = 25T.

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Definitions:

Output Per Capita

Output per capita is a measure of a country's economic output that accounts for its number of people, essentially giving an average production per person.

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

GNP

GNP, or Gross National Product, represents the total dollar value of all goods and services produced over a specific time period by a nation's residents, regardless of the production location.

Population

The total number of people inhabiting a particular area, region, or country.