One Point on a PPF Shows Production Levels at 50

question 44

Multiple Choice

One point on a PPF shows production levels at 50 tons of coffee and 100 tons of bananas. Remaining on the PPF, an increase of banana production to 140 tons shows coffee production at 30 tons. Still remaining on the PPF, coffee production at 10 tons allows banana production at 160 tons. The opportunity cost of a ton of bananas is

• A) constant because coffee production decreased by the same amount each time.
• B) decreasing, since the increase in banana production is less at each point considered.
• C) 16 to 1, that is every 1 ton of coffee given up will result in 16 more tons of bananas.
• D) increasing from 1/2 ton of coffee per ton of bananas to 1 ton of coffee per ton of bananas.

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Definitions:

Exclusive Jurisdiction

A legal term that means only a specific court has the power to adjudicate a certain type of case, preventing other courts from hearing the same case.

Bankruptcy Cases

Legal proceedings involving individuals or entities that cannot repay their debts to creditors and seek relief through court intervention.

Secured Claim

A creditor's claim that is backed by collateral, granting them a right to specific property if the debtor fails to meet the obligations.

Unsecured Claim

A claim or debt that does not have a specific asset backing it up, making it a riskier proposition for the lender.