Table 3-5 -Refer to Table 3-5.The Opportunity Cost of 1 Airplane for of 1

question 67

Multiple Choice

Table 3-5

-Refer to Table 3-5.The opportunity cost of 1 airplane for the United States is

• A)4 cars.
• B)3 cars.
• C)1/3 car.
• D)1/4 car.

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Definitions:

Economic Efficiency

A state in which resources are ideally distributed to best meet the needs of every person or entity, reducing waste and inefficiency to a minimum.

Gains From Trade

The benefits that parties obtain from engaging in voluntary exchange of goods or services.

Free Markets

Economic systems where prices for goods and services are determined by the open market and consumers, with minimal government intervention.

Opportunity Costs

The cost of foregone alternatives, or what is given up to engage in one activity instead of another.