Figure 3-2 Peru's Production Possibilities Frontier

question 269

Multiple Choice

Figure 3-2
Peru's Production Possibilities Frontier

-Refer to Figure 3-2.Suppose Peru decides to increase its production of rubies by 30.What is the opportunity cost of this decision?

• A) 1/8 emerald
• B) 1/3 emerald
• C) 1 emerald
• D) 3 emeralds

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Definitions:

Fixation

(1) in thinking, the inability to see a problem from a new perspective; an obstacle to problemsolving. (2) in personality theory, according to Freud, a lingering focus of pleasure-seeking the developing human organism from about 2 weeks after fertilization through the secondmonth

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

New Perspective

Fresh outlook or approach towards understanding or addressing an issue or concept.

Heuristics

Simple, efficient rules or guidelines used to make quick decisions or solve problems.