-The Table Above Shows the Production Possibilities for an Economy

question 143

Multiple Choice

-The table above shows the production possibilities for an economy.The opportunity cost of a loaf of bread is ________ when moving from possibility B to possibility C.

• A)1/2 of a book
• B)100 loaves of bread
• C)200 books
• D)2 books
• E)1 loaf of bread

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Definitions:

Tax Burden

The measure of taxes paid as a proportion of income or the overall economic impact of taxes on an individual or business.

Own Price Elasticity

A measure of the responsiveness of the quantity demanded of a good to a change in its own price.

Specific Tax

A tax that is levied as a fixed amount per unit of a good or service, rather than as a percentage of the price.

Price Elasticity

Measures the responsiveness of the quantity demanded of a good to a change in its price.