Suppose That a Country Is Producing on Its PPC at a Point

question 59

Multiple Choice

Suppose that a country is producing on its PPC at a point to the left of the tangency between the trade line and the PPC.At the production point,

• A)the opportunity cost in production of the good on the horizontal axis is less than its trade price.
• B)the opportunity cost in production of the good on the horizontal axis is more than its trade price.
• C)the opportunity cost in production of the good on the vertical axis is less than its trade price.
• D)the opportunity cost in production of the good on the horizontal axis may be either less than or more than its trade price.

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