It Took 100 Hours to Produce the First Unit and 95

question 9

Multiple Choice

It took 100 hours to produce the first unit and 95 hours to produce the second unit. How many hours are required to produce the eighth unit? [Note: a calculator is required to answer this question.]

• A) fewer than or equal to 60 hours
• B) greater than 60 hours but fewer than or equal to 75 hours
• C) greater than 75 hours but fewer than or equal to 90 hours
• D) greater than 90 hours

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Definitions:

Equitable Allocation

The fair and just distribution of resources among different groups or individuals.

Gains From Trade

The increase in utility or welfare that countries or individuals can achieve by specializing in the production of goods they are relatively more efficient at and exchanging them.

Decisions At Margin

The process of making decisions based on the additional benefit or cost of one more unit of change rather than on a total or average outcome.

Spending

The amount of money paid out or expended, typically on items or services.