A Production Possibilities Curve Has "Good X" on the Horizontal

question 46

Multiple Choice

A production possibilities curve has "good X" on the horizontal axis and "good Y" on the vertical axis. On this diagram, the opportunity cost of good X, in terms of good Y, is represented by the:

• A) distance to the curve from the horizontal axis.
• B) distance to the curve from the vertical axis.
• C) distance from the origin to the curve.
• D) change in Y for each change in X along the curve.

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Definitions:

Shiller Real Home Price Index

A metric that monitors variations in the cost of domestic properties in the U.S., corrected for inflation impacts.

Root Mean Square Error

A measure of the differences between values predicted by a model and the values observed, squared and averaged.

Shiller Real Home Price Index

An index that tracks inflation-adjusted changes in the price of residential real estate in the United States over time.

Simple Moving Average

An arithmetic mean calculated by adding recent closing prices of an asset and then dividing that by the number of time periods in the calculation average.