Figure 3-7 -What Is the Opportunity Cost of Moving from Point B

question 167

Multiple Choice

Figure 3-7
-What is the opportunity cost of moving from point B to point A in Figure 3-7?

• A)20 units of X
• B)50 units of X
• C)25 units of X
• D)75 units of X

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Definitions:

Tax

A compulsory financial charge or other levy imposed by a government on individuals or businesses to fund various public expenditures.

Binding Price Floor

A legal minimum price for a good or service that is set above the equilibrium price, resulting in surpluses.

Binding Price Ceiling

A government-imposed limit on how high a price can be charged for a product, set below the market equilibrium price, leading to shortages.

Decreases

A reduction in size, quantity, or degree; the opposite of increases.