Refer to the Above Figure

question 185

Multiple Choice

Refer to the above figure. Which one of the following statements is TRUE with regard to the economy depicted in the graph?

• A) Starting from point A, this economy does not incur any opportunity cost in producing more bread.
• B) Starting from point A, this economy does not incur any opportunity cost in producing more wool.
• C) In moving from point A to point B, the economy produces 30 additional bales of wool at an opportunity cost of 250 loaves of bread.
• D) In moving from point A to point B, the economy is experiencing economic growth.

---

Definitions:

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Self-Serving Bias

A common tendency for individuals to attribute positive outcomes to their own actions and negative outcomes to external factors.

Consensus

A general agreement among a group of people, often achieved through discussion and compromise.

Distinctiveness

The quality or state of being notably different or unique in comparison to others, allowing for recognizable differentiation.