Refer to Figure 1

question 24

Multiple Choice

Refer to Figure 1.7.The cost of producing at point G rather than point D is

• A)OA units of food.
• B)KL units of clothing.
• C)AB units of food.
• D)OL units of clothing.

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Definitions:

Firms

Business entities that produce goods or services, usually with the intention of selling them for a profit.

Opportunity Cost

The value of the best alternative forgone when a decision is made to use resources for a particular purpose.

Wage Increases

An upward adjustment in the amount of compensation employees receive for their work, often in response to inflation, productivity, or market demand.

Leisure

Time available for ease and relaxation where no work is done.