Given Below Is the Production Possibilities Schedule for a Small

question 46

Multiple Choice

Given below is the production possibilities schedule for a small island nation in South Pacific that produces capital and consumer goods.Table 2.3

-People (and all resources) :

• A)tend to specialize in those activities in which their opportunity costs are minimized.
• B)tend to specialize in those activities in which their opportunity costs are maximized.
• C)never consider opportunity costs before specializing in a particular activity.
• D)consider only direct costs while choosing to specialize in a particular activity.
• E)do not act in their own self-interest but specialize in those activities which benefit others.

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Definitions:

Decimal Places

The number of digits to the right of the decimal point in a number, determining its precision.

Additive Inverse

The number that when added to the original number, yields zero.

Multiplicative Inverse

A number which, when multiplied by the original number, results in one. It's often referred to as the reciprocal.

Compounded Monthly

A term used in finance to describe a process where interest is added to the principal balance of an investment or loan each month, and future interest accumulations are based on the new balance.