If Japan Must Give Up the Production of 75 Computers

question 228

Multiple Choice

If Japan must give up the production of 75 computers to produce 25 additional cellular telephones,the opportunity cost of producing 4 cellular telephones is _____ computers.

• A)4
• B)12
• C)71
• D)79

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Definitions:

U.S. Price Level

The average of current prices for goods and services in the United States, reflecting the purchasing power of the currency and the rate of inflation.

U.S. Exports

involve products and services that are produced in the United States and sold to other countries, contributing to the country's GDP.

Aggregate Demand Curve

A graphical representation showing the relationship between the overall price level and the total demand for goods and services in an economy.

Marginal Propensity

The proportion of an additional income that an individual spends on consuming goods and services, rather than saving.