The Following Graph Is the Production Possibilities Curve of a Nation

question 116

Multiple Choice

The following graph is the production possibilities curve of a nation: Refer to the above graph. The marginal opportunity cost of the fourth unit of bread is:

• A) 0 unit of drill presses
• B) 1 unit of drill presses
• C) 3 units of drill presses
• D) 4 units of drill presses

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Definitions:

Production Function

The relationship between the quantity of inputs used to make a good and the quantity of output of that good.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or services.

Output

The total quantity of goods or services produced within a given period by a firm, industry, or country.

Population Growth Rates

Measures the increase in a population's size within a specific time frame, considering factors such as births, deaths, and migration.