Use the Following to Answer Questions

question 218

Multiple Choice

Use the following to answer questions:
-(Table: Production Possibilities Schedule II) Look at the table Production Possibilities Schedule II. If an economy is producing at alternative W, the opportunity cost of producing at X is _____ unit(s) of consumer goods per period.

• A)0
• B)1
• C)4
• D)18

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Definitions:

Utility

In economics, the satisfaction or benefit derived from consuming a product or service.

Consumer Equilibrium

The point at which the amount of a product demanded by consumers equals the amount supplied, leading to a stable market price.

Utility Maximization

The process by which individuals choose consumption combinations that maximize their satisfaction or utility under given constraints.

Income

The financial gain or money received by an individual or entity, usually through employment, investment, or business ventures.