Table 11 Shows the Hypothetical Trade-Off Between Different Combinations of Stealth

question 51

Multiple Choice

Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S.capacity, ceteris paribus.Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers.
$\begin{array}{|c|c|c|c|c|}\hline \text { Combination } & \begin{array}{c}\text { Number } \\\text { of Stealth } \\\text { Bombers }\end{array} & \begin{array}{c}\text { Opportunity cost } \\\text { of Stealth } \\\text { Bombers in } \\\text { Terms of B-1s }\end{array} & \begin{array}{c}\text { Number } \\\text { of B-1s }\end{array} & \begin{array}{c}\text { Opportunity } \\\text { Cost of B-1s in } \\\text { Terms of Stealth } \\\text { Bombers }\end{array} \\\hline \mathrm{S} & 10 & & 0 & \\\hline \mathrm{T} & 9 & & 1 & \\\hline \mathrm{U} & 7 & & 2 & \\\hline \mathrm{V} & 4 & & 3 & \\\hline\end{array}$

$\text {Table 1.1}$
$\text {Production Possibilities for Bombers}$ On the basis of your calculations in Table 1.1, what is the opportunity cost of producing at point V rather than point U?

• A)3 B
• B)1 B
• C)4 Stealth bombers.
• D)3 Stealth bombers.

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Definitions:

Indifference Curve

A graph representing combinations of goods or services among which an individual is equally satisfied.

Equally Affordable

A condition where different goods or services have the same cost in terms of their value to a consumer, making them equally desirable.

Indifference Curves

Graphical representations in economics showing different combinations of two goods among which a consumer is indifferent in terms of utility or satisfaction.

Right Gloves

Garments designed specifically for the right hand, typically used for protection, warmth, or fashion.