-The Figure Above Shows the Production Possibilities Frontier for a Country.How

question 187

Multiple Choice

-The figure above shows the production possibilities frontier for a country.How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

• A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.
• B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.
• C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A.
• D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.
• E) More information is needed to determine how the two opportunity costs compare.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Comprehensive Income

It encompasses all changes in equity during a period, except those resulting from investments by and distributions to owners.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profit.

Other Comprehensive Income

Other Comprehensive Income includes revenues, expenses, gains, and losses that are not included in net income but affect equity, such as unrealized gains on securities.