The Data in the Table Below Assumes That with the Same

question 77

Multiple Choice

The data in the table below assumes that with the same quantity of resources, both Australia and Philippines produces food and computers. Australia can make 1,000 computers or 2,000 units of food in a day, and the Philippines can make 200 computers or 1,200 units of food in a day.
Table 20.2

-According to Table 20.2, what is the opportunity cost of 1 computer in Australia?

• A) half a unit of food
• B) one-sixth of a unit of food
• C) 1 unit of food
• D) 6 units of food
• E) 2 units of food

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Definitions:

Inferior Good

A type of good whose demand decreases when consumer income rises, unlike normal goods for which the opposite is true.

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.

Income Elasticity

It quantifies the sensitivity of the quantity demanded for a good to a change in consumer incomes, highlighting how demand varies as income levels shift.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.