If a Linear, Two-Good Production Possibilities Curve Has a Slope

question 114

Multiple Choice

If a linear, two-good production possibilities curve has a slope of ‒2, then:

• A)having an additional unit of the good measured on the vertical axis means giving up 2 units of the good measured on the horizontal axis.
• B)having an additional unit of the good measured on the vertical axis means giving up ½ of an unit of the good measured on the horizontal axis.
• C)you have an absolute advantage in the good measured on the vertical axis.
• D)you have a comparative advantage in the good measured on the vertical axis.

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Definitions:

Sales Details

Specific information related to the volume, transactions, and characteristics of sales within a business or market.

Value of K

In different contexts, it can refer to a specific constant or variable value used in mathematical equations or algorithms.

Mean Absolute Percentage Error

A measure used to evaluate the accuracy of a forecasting method by calculating the average absolute percent difference between predicted and observed values.

Sales Details

Information regarding the transactions, volumes, and characteristics of sales within a business or market.