The Quantity of Shoes Produced Is Measured Along the X-Axis

question 4

Multiple Choice

The quantity of shoes produced is measured along the x-axis of a bowed-outward production possibilities frontier and the quantity of shirts produced is measured along the y-axis. As you move down towards the right along the production possibilities frontier, the marginal cost of

• A)a pair of shoes decreases.
• B)a pair of shoes increases.
• C)a shirt remains constant.
• D)a shirt increases or decreases but we don't know for sure.
• E)a pair of shoes and a shirt is equal at the midpoint between the x-axis and the y-axis.

---

Definitions:

Rational Decision

A decision-making process that is based on making choices that result in the optimal level of benefit or utility for an individual.

Economic Payoff

The return or financial outcome received from an investment, decision, or policy, typically expressed in terms of profit or cost savings.

Behavioral Economics

A field of economic research that incorporates psychological insights into human behavior to explain economic decision-making.

Irrational

Describes a decision maker who chooses an option that leaves him or her worse off than choosing another available option.