Exhibit 2-1 Production Possibilities Curve Data -In Exhibit 2-1, According to the Information, the Opportunity Cost

question 121

Multiple Choice

Exhibit 2-1 Production possibilities curve data $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Consumption } \\\text { Goods }\end{array} & \begin{array} { c } \text { Capital } \\\text { Goods }\end{array} \\\hline 10 & 0 \\9 & 1 \\7 & 2 \\4 & 3 \\0 & 4 \\\hline\end{array}$$
-In Exhibit 2-1, according to the information, the opportunity cost of producing 3 units of capital is:

• A) 3 units of consumption goods.
• B) 4 units of consumption goods.
• C) 6 units of consumption goods.
• D) 7 units of consumption goods.

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A federal program in the United States (1972-1987), which provided state and local governments with unrestricted funds to be used at their discretion for a wide range of public purposes.

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Financial assistance provided by the federal government to state or local governments for broad purposes, with relatively few restrictions on how the funds may be spent.

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A political philosophy of devolution, or the transfer of certain powers from the United States federal government back to the states, initiated in the 1970s.