-Use the Above Table

question 260

Multiple Choice

-Use the above table. Assuming constant opportunity costs, the opportunity cost of producing cookies in country Alpha is ________, and the opportunity cost of producing cookies in country Beta is ________.

• A)0.33 ton of coffee; 2 tons of coffee
• B)3 tons of coffee; 0.5 ton of coffee
• C)0.375 ton of cookies; 2.25 tons of coffee
• D)2.67 tons of coffee; 0.44 ton of cookies

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Definitions:

Consumption

The use of goods and services by households, contributing to the overall demand in an economy.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit, often through the acquisition of assets.

Government Spending

Expenditures made by the government for its operations, provision of public services, or to stimulate the economy.

Imports

Products and offerings imported from foreign countries for the purpose of being sold.