On a Bowed-Out Production Possibilities Frontier Showing Possible Output Levels

question 154

Multiple Choice

On a bowed-out production possibilities frontier showing possible output levels of Good A and good B,the opportunity cost of producing the first 10 units of Good A will usually be:

• A)the same as the opportunity cost of producing the next 10 units of Good A.
• B)lower than the opportunity cost of producing the next 10 units of Good A.
• C)greater than the opportunity cost of making the next 10 units of Good A.
• D)10 units of Good A.
• E)10 units of Good B.

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Definitions:

Availability Heuristic

The tendency to judge the probability of a type of event by how easy it is to think of examples or instances.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Event

An occurrence or happening, especially one of significance, that can be observed or participated in.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.