The Above Figure Shows the Production Possibility Frontier for a Country

question 16

Multiple Choice

The above figure shows the production possibility frontier for a country. What is the opportunity cost to move from point D to point E?

• A) 9 thousand bottles of wine
• B) 6 tonnes of rice
• C) 15 thousand bottles of wine
• D) 6 thousand bottles of wine
• E) Nothing, it is a free lunch.

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Definitions:

Market Segment

A collection of individuals, groups, or organizations who share one or more characteristics and thus have relatively similar product needs and desires.

Small Businesses

Companies with limited revenue and number of employees, falling below certain statutory limits.

Downsizing

The reduction of a company’s workforce to lower expenses, often involving layoffs of employees as a measure to sustain or improve the business.