In a Single Year,the Netherlands Can Raise 100 Tonnes of Beef

question 135

Multiple Choice

In a single year,the Netherlands can raise 100 tonnes of beef or produce 1 000 boxes of tulips.In the same growing season,Belgium can raise 50 tonnes of beef or produce 750 boxes of tulips.In autarky,the opportunity cost of 1 tonne of beef in the Netherlands is:

• A) 100 tonnes of beef.
• B) 1 000 boxes of tulips.
• C) 10 boxes of tulips.
• D) 0.1 box of tulips.

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Definitions:

Income Distribution

The way in which a nation's total GDP is distributed amongst its population or the distribution of income among individuals or households of a country.

Marginal Productivity Theory

An economic theory that relates the addition of a unit of labor or capital to the production process to the incremental increase in outputs.

Production Incentives

Rewards or incentives designed to encourage increased productivity or output by employees or companies.

Marginal Productivity Theory

An economic theory that suggests the price of a factor of production (like labor or capital) is determined by its marginal productivity, or the additional output generated by one more unit of the factor.