-The Above Table Shows Production Combinations on a Country's Production

question 55

Multiple Choice

-The above table shows production combinations on a country's production possibilities frontier. The opportunity cost of increasing the production of Y from 16 to 28 units is _______ units of good X.

• A) 3
• B) 6
• C) 12
• D) There is no opportunity cost when moving from one point to another along a production possibilities frontier so none of the above answers is correct.

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Definitions:

Rent

Payment made periodically by a lessee to a lessor for the use of land, a building, or another property.

Profits

The financial gain obtained when revenue from business activities exceeds expenses and taxes.

GDP

Gross Domestic Product is defined as the cumulative monetary or market value of all the finished products and services generated inside a country during a particular time frame.

Final Goods

Products that have completed the production process and are ready for sale to the consumer or end-user, excluding intermediate goods used in production.