Figure 1-7 Shows the Production Possibilities Boundary for an Economy

question 82

Multiple Choice

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods - cotton and bananas. FIGURE 1-7
-Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods - cotton and bananas,both measured in tonnes produced per year.If the economy moves from point C to point D,what is the opportunity cost of each extra tonne of bananas produced?

• A)0.036 tonnes of cotton
• B)0.36 tonnes of cotton
• C)3.6 tonnes of cotton
• D)36 tonnes of cotton
• E)360 tonnes of cotton

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