The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 46

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4
-Refer to Figure 1-4.At point B,

• A)the price of capital goods is higher than the price of consumer goods.
• B)Country X is producing too many consumer goods and too few capital goods.
• C)the price of consumer goods is equal to the price of capital goods.
• D)the opportunity cost of producing an extra unit of capital goods is higher than at point A.
• E)the opportunity cost of producing an extra unit of consumer goods is higher than at point A.

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Definitions:

Pleasure Principle

A psychoanalytic concept suggesting that people seek pleasure and avoid pain, guiding much of human behavior and decision-making.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, enforcing societal norms and values.

Id

In psychoanalysis, the part of the mind in which innate instinctive impulses and primary processes are manifest.

Oral Stage

In Freudian psychoanalysis, the first stage of psychosexual development during infancy, where the mouth is the focus of libido and satisfaction comes from sucking and swallowing.