Figure 3-2 Brazil's Production Possibilities Frontier

question 13

Multiple Choice

Figure 3-2
Brazil's Production Possibilities Frontier
-Refer to Figure 3-2.The fact that the line slopes downward reflects the fact that

• A)for Brazil,it is more costly to produce peanuts than it is to produce cashews.
• B)Brazil will produce more peanuts and fewer cashews as time goes by.
• C)Brazil faces a tradeoff between producing peanuts and producing cashews.
• D)Brazil should specialize in producing cashews.

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Definitions:

SUTA Tax Rate

The state unemployment tax rate that employers pay to fund unemployment benefits, which can vary based on the employer's industry and experience with layoffs.