Table 2-1 -Refer to Table 2-1. What Is the Opportunity Cost to the Opportunity

question 107

Multiple Choice

Table 2-1

-Refer to Table 2-1. What is the opportunity cost to Erehwon of increasing the production of computers from 150 to 200?

• A) 300 kg cheese
• B) 500 kg cheese
• C) 400 kg cheese
• D) as the productions costs for computers and cheese are unknown, it is not possible to tell

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Definitions:

Frictional Unemployment

Refers to people who are between jobs or just entering or reentering the labor market.

Rate of Inflation

The percentage increase in the price level of goods and services in an economy over a period of time.

Misery Index

An economic indicator created by adding the unemployment rate to the inflation rate, meant to represent the average citizen's economic well-being.

Unemployment Rate

The segment of the labor force that is currently jobless and engaging in job-seeking activities.