Use the Information Below to Answer the Following Questions

question 96

Multiple Choice

Use the information below to answer the following questions.
Fact 2.4.2
Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
-Given Fact 2.4.2, the opportunity cost of producing a unit of X is

• A)1 unit of Y for Agnes and 2 units of Y for Brenda.
• B)1 unit of Y for Agnes and 1/2 unit of Y for Brenda.
• C)1 hour for Agnes and 1/2 hour for Brenda.
• D)1 hour for Agnes and 2 hours for Brenda.
• E)1 hour for Agnes and 1/4 hour for Brenda.

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Definitions:

Lorenz Curve

A graphical representation used to show the distribution of income or wealth within a society, depicting the proportion of total income earned by various segments of the population.

Income Inequality

The unequal distribution of household or individual income across the various participants in an economy.

Household Income

The combined gross income of all members of a household, typically measured over a set period of time, such as a month or a year.

Taxes

Compulsory financial charges imposed by a government on individuals, corporations, or transactions to fund public services and government activities.