Figure 21-5

question 236

Multiple Choice

Figure 21-5
(a) (b)

-Refer to Figure 21-5. In graph (b) , what is the price of good X relative to the price of good Y (i.e., Px/Py) ?

• A) 1
• B) 1/3
• C) 3
• D) 10

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Definitions:

Fixed Assumptions

Preset conditions or principles that are assumed to remain constant over a defined period for the purpose of analysis or modeling.

Achievable Output Levels

The various amounts of goods and services an economy can produce when utilizing all its resources efficiently.

Fully Employed

Refers to a situation where all available labor resources are being used in the most economically efficient way, often considered an indicator of economic health.

Unattainable Points

Situations or outcomes in economic models that cannot be achieved given the current resources and technology.