Table 23 -Refer to Table 2

question 182

Multiple Choice

Table 2.3
$$\begin{array}{l}\text { Table } 2.3\\\begin{array} { | l | l | l | l | l | l | } \hline \text { Products } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \\\hline \begin{array} { l } \text { Consumer } \\\text { goods }\end{array} & 40 & 35 & 20 & 7 & 0 \\\hline\end{array}\end{array}$$
-Refer to Table 2.3, which shows the production possibilities frontier between the production of capital goods and consumer goods in an economy. Moving from D to B means _____

• A) 1 unit of capital goods is given up for 7 units of consumer goods.
• B) 2 units of capital goods are given up for 13 units of consumer goods.
• C) 1 unit of capital goods is given up for 13 units of consumer goods.
• D) 2 units of capital goods are given up for 28 units of consumer goods.

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Definitions:

Currency Restrictions

Regulations or limits placed on the exchange or trade of a country's currency with others to control the currency's value and balance of payments.

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net income transfers, indicating the flow of goods, services, and payments in and out of the country.

Net Exports

Net exports are the difference between a country's total exports of goods and services and its total imports of them, representing the external demand for a country’s goods.

Statistical Discrepancy

The difference between two figures that are supposed to match but do not, often found in economic data due to estimation errors or timing differences.