Table 3-12 ​

question 81

Multiple Choice

Table 3-12
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Assume that Indonesia and India can switch between producing maize and bananas at a constant rate.
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-Refer to Table 3-12. India's opportunity cost of producing bananas is

• A)0.5 units of maize.This is lower than Indonesia's opportunity cost of producing bananas.
• B)2.5 units of maize.This is higher than Indonesia's opportunity cost of producing bananas.
• C)2/5 units of maize.This is lower than Indonesia's opportunity cost of producing bananas.
• D)0.5 units of maize.This is higher than Indonesia's opportunity cost of producing bananas.

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Definitions:

Social Optimum

The ideal state of allocation of resources where social welfare is maximized, taking into account all costs and benefits to society.

Fire Extinguishers

Fire extinguishers are active fire protection devices used to extinguish or control small fires, often in emergency situations.

Subsidized

Financial support provided by the government or other institutions to reduce the cost of services or commodities.

Tax

Compulsory financial charges or levies imposed by a government on individuals or entities to fund public spending and government operations.