The Data in the Accompanying Production Possibilities Tables (In Millions

question 235

Multiple Choice

The data in the accompanying production possibilities tables (in millions of units) suggest that production in

• A)Germany is subject to increasing opportunity costs and in the United States to constant opportunity costs.
• B)the United States is subject to increasing opportunity costs and in Germany to constant opportunity costs.
• C)both Germany and the United States is subject to constant opportunity costs.
• D)both Germany and the United States is subject to increasing opportunity costs.

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Definitions:

Heart Attack

A medical emergency that occurs when the flow of blood to the heart is blocked, causing heart muscle damage or death.

Normal Good

A type of good for which demand increases when consumer income rises, and decreases when consumer income decreases.

Rental Price

The cost associated with renting a property, such as an apartment or a car.

Normal Good

A type of good for which demand increases as the income of individuals or the economy increases.