Table 3-6 -Refer to Table 3-6. What Is the Opportunity Cost of the Opportunity

question 193

Multiple Choice

Table 3-6

-Refer to Table 3-6. What is the opportunity cost of 1 unit of bread in England?

• A)4 cheeses.
• B)2 cheeses.
• C)1 cheese.
• D)1/2 cheese.

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Definitions:

Capital Flow

The movement of money for the purpose of investment, trade, or business production between countries.

Excess Profits

Profits that exceed what is considered normal or expected, often realized in favorable market conditions or through monopolistic practices.

Free Markets

An economic system in which prices are determined by unrestricted competition between privately owned businesses, without government intervention.

Efficiency

The optimal allocation of resources to produce the maximum amount of goods and services, with the least waste of resources.