Suppose That a Typical German Factory Can Produce 20 Cameras

question 163

Multiple Choice

Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or 1 computer in an hour. The opportunity cost of 20 cameras in terms of computers in Germany is

• A) 10 computers per camera.
• B) 2 computers per camera.
• C) 1 computer per camera.
• D) 1/20 of a computer per camera.

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Definitions:

Demand Curve

A chart that illustrates the link between a product's price and the amount of the product that buyers are prepared and capable of buying at different price levels.

Government Purchase

The buying of goods and services by government agencies, contributing to public sector spending.

Privileged Information

Confidential communications between certain individuals, such as an attorney and his or her client, that are protected from disclosure except under court order.

Confidential Information

Sensitive data or knowledge that is protected from unauthorized access and disclosure, often within a legal, professional, or corporate context.