Use the Following to Answer Questions

question 223

Multiple Choice

Use the following to answer questions :
-(Table: Production Possibilities Schedule I) Look at the table Production Possibilities Schedule I. The opportunity cost of producing the third unit of consumer goods is _____ units of capital goods.

• A)two
• B)four
• C)six
• D)eight

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Definitions:

Comparative Advantage

The ability of a country or entity to produce a specific good or service at a lower opportunity cost than others, leading to specialization in trade.

Tires

Rubber-based components that fit around the rims of wheels to provide vehicles with traction, support, and a cushion from the impact of the road.

Microchips

Small semiconductor devices containing electrical circuits that can perform calculations or store data.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.