Countries a and B Produce Only Rubber Bands and Paper

question 99

Multiple Choice

Countries A and B produce only rubber bands and paper clips under the production possibilities schedules shown below: In country A the opportunity cost of 1 paper clip is:

• A) 2 rubber bands
• B) 1 rubber band
• C) ½ rubber band
• D) ¼ rubber band The opportunity cost of 1 paper clip = 40/80 = ½ rubber band.

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Definitions:

Valid

Referring to arguments, data, or conclusions that are logically sound, well-founded, and corresponds accurately to the real world.

Quality

Refers to the standard of something measured against other things of a similar kind; the degree of excellence of something.

Psychological Test

A standardized measure of a sample of a person’s behavior.

Socioeconomic Status

Represents an individual's or group's economic and social position relative to others, based on income, education, and occupation.