Use the Following to Answer Question

question 37

Multiple Choice

Use the following to answer question:

-(Figure: Bicycles and Radishes I) Use Figure: Bicycles and Radishes I.The figure shows production possibility frontiers for two countries that produce only radishes and bicycles.The axes of the two graphs are measured in equivalent units.Country A is operating at point M,and country B is operating at point N.Suppose country A discovers a new technology that greatly increases its ability to produce bicycles but has no effect on its ability to produce radishes.This would:

• A)lower the opportunity cost of producing radishes in country A.
• B)increase the opportunity cost of producing radishes in country A.
• C)not affect the opportunity cost of producing radishes in country A.
• D)increase the opportunity cost of producing radishes in country B.

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Definitions:

Environmental Impact Statement

A document that provides a detailed analysis of the potential effects a proposed project or action may have on the environment, as required by law, before certain actions can proceed.

National Environmental Policy Act

A United States environmental law that promotes the enhancement of the environment and established the President's Council on Environmental Quality.

Truth in Lending Act

A federal law designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the lending arrangement and all costs.

Bait-and-Switch

A deceptive marketing strategy where a merchant lures customers with the promise of a product or service but then switches to selling a different, often inferior, item.