-The Figure Above Shows the Production Possibilities Frontiers for the United

question 3

Multiple Choice

-The figure above shows the production possibilities frontiers for the United Kingdom and France.What is the opportunity cost of one bushel of wheat for the United Kingdom?

• A) 1/4 of a pound of fish
• B) 1/2 of a pound of fish
• C) 1 pound of fish
• D) 200 pounds of fish
• E) 2 pounds of fish

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, measuring the total net benefit to society from the production and consumption of a good or service.

Free-Trade Policy

Economic policies that eliminate tariffs and trade barriers between countries to encourage trade and economic integration.

Import Quota

A government-imposed restriction on the quantity of a specific good that can be imported into a country.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.