Use the Following to Answer Questions

question 221

Multiple Choice

Use the following to answer questions:
Figure: Sofas and Windows
-How is slope, measured as rise over run, related to the production possibilities frontier?

• A) Slope measures the fixed costs of producing Good X and Good Y. For a slope of -3, the fixed cost of producing either Good X or Good Y is $3 multiplied by the number of units produced.
• B) Slope gives the opportunity cost of producing an additional unit of the good on the x-axis. So, if the slope is -3, the country must give up producing one-third of a unit of Good Y for every additional unit of Good X it produces.
• C) Slope gives the fixed cost of producing an additional unit of the good on the x-axis. So, if the slope is -3, the country must give up producing one-third of a unit of Good Y for every additional unit of Good X it produces.
• D) Slope gives the opportunity cost of producing an additional unit of the good on the x-axis. So, if the slope is -3, the country must give up producing 3 units of Good Y for every additional unit of Good X it produces.

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Definitions:

Tangential

Diverging from the previous topic or path without reaching a definite goal or conclusion.

Poverty

A state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.

Liability Concerns

Issues or considerations regarding legal responsibilities and the potential for being subject to lawsuits or claims.

Assessment Report

The “deliverable” or “end product” of the assessment process. Its purpose is to synthesize an assortment of assessment techniques so that a deeper understanding of the examinee is obtained and recommended courses of action can be offered.