-As Output Moves from Point a to Point B to Point

question 376

Multiple Choice

-As output moves from point a to point b to point c along the PPF in the above figure, the opportunity cost of one more unit of good X

• A) rises. The opportunity cost of one more unit of good Y also rises.
• B) rises. The opportunity cost of one more unit of good Y falls.
• C) falls. The opportunity cost of one more unit of good Y rises.
• D) falls. The opportunity cost of one more unit of good Y also falls.

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Definitions:

Liquidity

A measure of how quickly and easily an asset can be converted into cash without significantly affecting its market price.

Asset Management

The systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner to maximize their value and investment return.

Profitability

A measure of the efficiency and effectiveness of a company in generating profit from its operations over a specific period.

Debt

An amount of money borrowed by one party from another, requiring repayment often with interest.