If an Economy Can Produce a Maximum of 100 Units

question 30

Multiple Choice

If an economy can produce a maximum of 100 units of good X and the opportunity cost of 1X is always 5Y,then what is the maximum number of units of good Y the economy can produce?

• A) 250
• B) 100
• C) 20
• D) 500
• E) none of the above

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Definitions:

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe existing states, outcomes, or future events.

Individual Mandate

A requirement for individuals to have health insurance or pay a penalty, originally a key provision of the Affordable Care Act.

Affordable Care Act

The Affordable Care Act, also known as Obamacare, is a law enacted to increase health insurance quality and affordability, and lower the uninsured rate by expanding public and private insurance coverage.

Adverse Selection

A situation where sellers have information that buyers do not have, or vice versa, leading to an unbalanced and inefficient market.