If Countries a and B Produce Only Either Rubber Bands

question 175

Multiple Choice

If countries A and B produce only either rubber bands or paper clips, their maximum outputs are shown in the accompanying production possibilities schedules. In country A the opportunity cost of 1 paper clip is

• A)2 rubber bands.
• B)1 rubber band.
• C)1/2 rubber band.
• D)1/4 rubber band.

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Definitions:

Weighted Moving Average

A calculation that averages a set of numbers, giving different weights to each value, commonly used in finance and forecasting.

Waffle Sales

The revenue or quantity sold from the transaction of waffles in a given period, often used to gauge business performance in the food industry.

Mean Absolute Deviation

A statistical measure that represents the average absolute difference between each data point and the mean of the data set, indicating variability.

Forecast Errors

The difference between the actual outcomes and the predicted outcomes in forecasting, indicating the accuracy of the forecasts.