Look at the Following Production Possibilities Table for Smartphones and Tablets.The

question 309

Multiple Choice

Look at the following production possibilities table for smartphones and tablets.The table shows the maximum combination of smartphones and tablets of corn that can be produced,when all resources are fully employed.
$$\begin{array} { l r r r r r } & \text { Production Possibilities } \\\text { Good } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\& & & & & \\\hline \text { Smartphones } & 10 & 20 & 30 & 40 & 50 \\\text { Tablets } & 150 & 140 & 120 & 90 & 50 \\\hline\end{array}$$
Based on the above information,

• A)there is no trade-off between smartphones and tablets.
• B)the opportunity cost of producing 30 instead of 20 smartphones is 120 tablets.
• C)the opportunity cost of producing 40 instead of 30 smartphones is 30 tablets.
• D)the opportunity cost of producing 90 instead of 50 tablets is 50 smartphones.

Identify and explain market failures related to public goods, including the free-rider problem.

Recognize the conditions under which the provision of public goods is optimal, including the role of the government.

Distinguish between rival and nonrival, excludable and nonexcludable goods.

Explain the difference between the marginal cost of production and society's willingness to pay for public goods.

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used for allocating manufacturing costs.

Flexible Budget Total

A financial plan that adjusts or varies with changes in the volume of activity or business.

Direct Labor Hours

The total hours of labor directly involved in producing goods or services, often used as a basis for allocating overhead costs.

Indirect Labor

Labor costs not directly associated with the production of goods or services, such as administrative and support personnel.