The Following Table Shows the Production Possibilities for the Country

question 58

Multiple Choice

The following table shows the production possibilities for the country of Erewhon:

-Refer to the table above to answer this question.Erewhon is producing 21 units of wine,approximately how many units of cheese can it produce?

• A)7 units of cheese
• B)9 units of cheese
• C)14 units of cheese
• D)19 units of cheese

---

Definitions:

Capital

Capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts as well as the physical factors of production.

Opportunity Cost

The value of the best alternative that is forgone when a choice is made between several mutually exclusive alternatives.

Bowed Outward

Describes a curve (such as in production possibilities frontier) that shows increasing opportunity costs for producing two goods.

Capital

Assets with monetary value, including cash and commodities, which are utilized to produce income or accumulate wealth.