-The Above Figure Shows the Production Possibility Frontier for a Country.Suppose

question 73

Multiple Choice

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point D.What is the opportunity cost of increasing the production of rice to 15 tons?

• A) 9 thousand bottles of wine
• B) 6 thousand bottles of wine
• C) 15 thousand bottles of wine
• D) 12 tons of rice
• E) Nothing, it is a free lunch.

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Definitions:

Machine Set-ups

The arrangements and adjustments made to machinery to prepare it for a production run.

Skilled Labour

Workers who have specialized training or expertise in a particular field or job.

Sunk Cost

Any cost that has already been incurred and that cannot be changed by any decision made now or in the future.

Obsolete Desk Calculators

Desk calculators that are no longer considered efficient or useful due to advancements in technology or changes in user needs.