If We Consider the Reality That Each Worker Has Different

question 62

Multiple Choice

If we consider the reality that each worker has different skills, then the production possibilities frontier:

• A) should display a constant opportunity cost of a good, as more of that good is produced.
• B) should display a decreasing opportunity cost of a good, as more of that good is produced.
• C) should display an increasing opportunity cost of a good as more of that good is produced.
• D) cannot be drawn, as too many variables would need to be taken into consideration.

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Definitions:

Percentiles

Statistical measures indicating the value below which a given percentage of observations in a group of observations falls.

Interquartile Range

A measure of variability, defined as the difference between the first and third quartiles, describing the middle 50% of a data set.

25th Percentile

A value below which 25% of the data falls.

75th Percentile

A value below which 75% of the data points in a dataset fall, used as a measure of dispersion.