Table 2.1.1 The Following Table Gives Points on the Production Possibilities Frontier

question 145

Multiple Choice

Table 2.1.1
The following table gives points on the production possibilities frontier for goods X and Y.

-Refer to Table 2.1.1. As we increase the production of X,

• A)the amount of Y that is given up for each additional unit of X decreases.
• B)the output of Y increases.
• C)the opportunity cost of each additional unit of X increases.
• D)unemployment increases.
• E)the amount of X increases at an increasing rate.

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Definitions:

Calculated

Pertains to something determined through the use of mathematical methods or a process of careful thought and consideration.

Generic Brands

Products that are sold under a retailer’s brand name rather than a manufacturer’s brand name, usually at a lower price and with simpler packaging.

National Brands

Brands that are marketed and recognized across an entire country, offering a consistent product or service experience nationwide.

Exclusive Distribution

A strategy where a product is distributed through a single wholesaler or retailer in a specific geographic area, limiting the number of outlets to maintain exclusivity.