When Moving Along the Production Possibilities Frontier, Opportunity Cost Is

question 23

Multiple Choice

When moving along the production possibilities frontier, opportunity cost is measured as the

• A) increase in the quantity produced of one good divided by the decrease in the quantity produced of another good.
• B) decrease in the quantity produced of one good divided by the increase in the quantity produced of another good.
• C) quantity produced of one good divided by the quantity produced of another good.
• D) quantity produced of one good multiplied by the quantity produced of another good.

---

Definitions:

New Loans

Recently issued debts or obligations by a lender to a borrower, typically involving a certain amount of money to be paid back with interest.

Balance Sheets

Financial statements that summarize a company's assets, liabilities, and shareholders' equity at a specific point in time.

Asset

An item of value owned by an individual or corporation, expected to provide future benefit or revenue.

Reserve Requirement

A regulation set by central banks requiring commercial banks to hold a certain amount of their deposits as reserves, either as cash in their vaults or as deposits with the central bank, to ensure liquidity.