Figure 113 Shows Mendork's Production Possibility Curve for the Only Two

question 96

Multiple Choice

Figure 1.13 shows Mendork's production possibility curve for the only two goods that it produces-guns and butter.

-Refer to Figure 1.13 to answer this question.What is the opportunity cost of producing the first 2 tonnes of butter?

• A)2 guns.
• B)18 guns.
• C)20 guns.
• D)The answer cannot be determined from the information given.

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Definitions:

U.S. Army

The land warfare service branch of the United States Armed Forces, responsible for land-based military operations.

National Resources Planning Board

A U.S. government agency active during the 1930s and early 1940s, part of the New Deal, that conducted research and planning regarding the use of natural resources.

Keynesian Economics

An economic theory stating that government intervention through monetary and fiscal policies is necessary to manage economic cycles and stimulate economic growth.

Laissez-Faire

An economic philosophy advocating for minimal government intervention in business and the economy.