Following Is the Production Possibilities Schedule for an Economy Producing

question 25

Multiple Choice

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1

-Refer to Table 2.1. According to the production possibilities schedule, in the table above, which of the following statements is true?

• A)Moving from choice 2 to choice 3, the opportunity cost of producing 20 more units of good B is 20 units of good A.
• B)There are increasing opportunity costs associated with producing more units of good B.
• C)Moving from choice 3 to choice 4, the opportunity cost of producing 20 more units of good B is 30 units of good A.
• D)Moving from choice 1 to choice 2, the opportunity cost of producing 20 more units of good B is 10 units of good A.
• E)All of these statements are true.

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Definitions:

Formal Authority

The power granted to an individual or organization by virtue of their position or role, enabling them to enforce rules or make decisions.

Buying Center

A group of individuals within an organization who collectively participate in the decision-making process regarding the purchase of goods and services.

Buyers

Individuals or organizations that purchase goods or services for personal use or for the purpose of resale.

Formal Authority

The power given to an individual or group based on their position within an organization's hierarchy.