The Following Diagrams Show the Production Possibilities Boundaries for Austria

question 36

Multiple Choice

The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes. FIGURE 32-2
-Refer to Figure 32-2.The diagrams illustrate that the ________ is lower in Austria than in Switzerland.

• A)opportunity cost of producing shoes
• B)opportunity cost of producing bicycles
• C)total cost of producing shoes
• D)average cost of producing bicycles
• E)comparative advantage in producing bicycles

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Definitions:

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared to buy at a given price.

Excess Supply

A situation where the quantity of a product offered for sale by producers exceeds the quantity that consumers are willing to buy at a given price.

Quantity Supplied

The total amount of a specific good or service that producers are willing and able to sell at a particular price over a given period of time.

Quantity Demanded

The specific amount of a product that consumers are willing and able to buy at a given price over a certain period of time.