Consider Two Points on the PPF: Point A,at Which There

question 58

Multiple Choice

Consider two points on the PPF: point A,at which there are 50 apples and 40 pears,and point B,at which there are 46 apples and 41 pears.If the economy is currently at point A,the opportunity cost of moving to point B is

• A) 1 pear.
• B) 4 apples.
• C) 3 apples.
• D) 41 pears.

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Definitions:

Current Account

Part of a nation's balance of payments encompassing the trade balance, net primary income, and net secondary income components.

Balance of Payments

A comprehensive summary of a country's economic transactions with the rest of the world over a specific time period, including trade, services, and financial transfers.

Capital Account

A component of a nation’s balance of payments that records all transactions of purchase and sale of assets, like real estate and stocks with other countries.

Financial Account

A component of a country's balance of payments that records transactions of foreign investment and domestic investments abroad.