The Figure Given Below Represents the PPC in Two Nations

question 63

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-Most markets involve the use of money for transactions because:

• A)goods and services can be exchanged more easily with money than without it.
• B)goods and services cannot be exchanged without money.
• C)using money requires a double coincidence of wants.
• D)the transaction costs of using money are very high.
• E)the value of money remains same across countries over time.

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Definitions:

Direct Materials Quantity

The amount of raw materials used in the production of goods, directly tied to the output.