Use the Production Possibilities Data Below to Answer the Following

question 76

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 rancher is

• A) 5 hours of labor.
• B) 4 hours of labor.
• C) 5/4 pounds of meat.
• D) 4/5 pound of meat.

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Definitions:

Price Ceiling

A legally imposed maximum price on a good or service, above which it cannot be sold.

Rent Control

Government-imposed limits on the amount landlords can charge for renting out housing or apartments, intended to keep housing affordable.

Price Floor

A government-imposed limit on how low a price can be charged for a product, meant to ensure fair compensation for producers.

Rent Control

A government policy or law that limits the amount landlords can charge for leasing a home or apartment, with the aim to keep housing affordable for tenants.