Figure: Indifference Curves (Figure: Indifference Curves) What Is the Opportunity

question 134

Multiple Choice

Figure: Indifference Curves (Figure: Indifference Curves) What is the opportunity cost of cloth in
Terms of wheat in this example?

• A)A unit of cloth may be obtained by foregoing a unit of wheat.
• B)A unit of cloth "costs" 2 units of wheat.
• C)A unit of cloth "costs" 1/2 unit of wheat.
• D)Not enough information is given to answer.

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Definitions:

Economic Efficiency

The optimal distribution of resources to maximize productivity and fulfill consumer preferences with minimal waste.

Paradox Of Voting

The concept that in a large election, the probability of one vote being decisive is so small that rational voters have no incentive to vote.

Majority Voting

A decision-making process where the choice supported by more than half of the participants wins.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by one individual without preventing the consumption by others.