Given Below Is the Production Possibilities Schedule for Capital Goods

question 31

Multiple Choice

Given below is the production possibilities schedule for capital goods and consumer goods.Table 2.2

-If the nation depicted in Figure 2.3 is producing at combination E, the opportunity cost of producing the tenth unit of consumer good is:

• A)10 units of capital goods.
• B)6 units of capital goods.
• C)1 unit of capital good.
• D)4 units of capital goods.
• E)zero unit of capital good.

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Definitions:

Unemployed

Individuals who are without a job but are actively looking for work and available to start work.

Endogenous

Originating from within a system, referring to factors or variables in economic models that are determined by the dynamics within the model itself, as opposed to external influences.

Business Cycle

The natural rise and fall of economic growth that occurs over time, including periods of expansion, peak, recession, and recovery.

External Shocks

Events outside the economic system that can cause sudden and significant changes within an economy, such as natural disasters or geopolitical events.