Exhibit 29-1 -According to the Data in Exhibit 29-1, the Opportunity Cost

question 193

Multiple Choice

Exhibit 29-1
-According to the data in Exhibit 29-1, the opportunity cost of producing one more unit of good A in India is

• A)1/2 unit of good B.
• B)1/3 unit of good B.
• C)3 units of good B.
• D)2 units of good B.
• E)5 units of good B.

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Definitions:

Economic Growth

An increase in a country's output of goods and services over time, typically measured by the rise in real GDP, which enhances the economy's overall wealth and living standards.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain.

Human Capital

The stock of competencies, knowledge, social and personal attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

Physical Capital

Assets that are tangible, such as machinery, buildings, and equipment, which are used in production to create other goods or services.