Suppose That a Worker in Country a Can Make Either

question 78

Multiple Choice

Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Which of the following is true?

• A) In Country A, the opportunity cost of one iPhone is two iPads.
• B) In Country A, the opportunity cost of one iPad is two iPhones.
• C) The opportunity cost of iPads is lower in Country A than in Country B.
• D) In Country B, the opportunity cost of one iPhone is two iPads.

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Definitions:

Economic Growth

The growth in the real market value of goods and services that an economy generates over a period.

Technology

The application of scientific knowledge for practical purposes, especially in industry - machinery, equipment, and software developed from such scientific knowledge.

Production Possibility Frontier

An illustration indicating the top production capabilities for a pair of items, given certain inputs like resources.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in the production process.