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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Definitions:

Deposited

The act of placing money or another form of value into an account.

Interest

The cost of borrowing money or the payment received for deposit funds, calculated as a percentage of the principal.

Investment

The allocation of money into financial assets, real estate, or other ventures with the expectation of obtaining additional income or profit.

Interest Earned

The amount of money gained on an investment or savings account over time due to applied interest rates.