In the Context of the Production Possibilities Curve, Opportunity Cost

question 28

Multiple Choice

In the context of the production possibilities curve, opportunity cost is measured in:

• A) dollars paid for the goods.
• B) the quantity of other goods given up.
• C) the value of the resources used.
• D) changing technology.
• E) units of satisfaction.

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Definitions:

Ratio

A comparative statistic that shows the relative size of two numbers or quantities to each other, expressed as "x to y" or x:y.

Ratio

A mathematical relationship between two numbers indicating how many times the first number contains the second.

Interval

A range of values between two points, often used in reference to scales in measurements.

True Zero Point

In measurement scales, a true zero point indicates the absence of the quantity being measured, allowing for ratios to be meaningfully calculated.