Use the Production Possibilities Data Below to Answer the Following

question 56

Multiple Choice

Use the production possibilities data below to answer the following question(s) .
Table 2-3

Refer to Table 2-3. The opportunity cost of 1 pound of potatoes for the farmer is

• A) 8 hours of labor.
• B) 2 hours of labor.
• C) 4 pounds of meat.
• D) 1/4 pound of meat.

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Definitions:

Net Capital Outflow

The difference between the domestic purchases of foreign assets and the foreign purchases of domestic assets.

Exchange Rate

The rate at which one currency can be exchanged for another.

Affordability

A measure of a person's ability to purchase goods or services, typically considering their income and the price of the goods or services.

Net Capital Outflow

The difference between a nation's total investments outside the country and foreign investments within the country over a certain period.