-The Table Above Lists Six Points on the Production Possibilities

question 32

Multiple Choice

-The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 5th tonne of grain?

• A) 2 cars per tonnes of grain
• B) 16 cars per tonnes of grain
• C) 3 cars per tonnes of grain
• D) 6 cars per tonnes of grain

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Movement Along

A change in the quantity demanded or supplied of a good or service resulting from a change in its price, represented graphically as a movement along a demand or supply curve.

Preferences

The subjective tastes and desires that influence individuals' choices between different goods, services, or actions.

Buyers

Individuals or entities that purchase goods or services.