The Figure Given Below Shows the Income-Leisure Trade Off of an Individual.Figure

question 25

Multiple Choice

The figure given below shows the income-leisure trade off of an individual.Figure 16.5
AB and AC: Income constraints of the individual
I₁, I₂, and I₃ curves show the income leisure choices of the individual.
-According to the U.S. population surveys conducted by the census, since 1980 the total foreign-born population as a percentage of the total U.S. population:

• A)has not changed.
• B)has declined.
• C)has risen.
• D)has been stable.
• E)has fallen to zero.

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Definitions:

Comparative Advantage

The competence of an individual, firm, or nation to forge a good or render a service with a lower forfeited opportunity compared to others in the market.

Productivity

A measure of the efficiency of production, usually defined as the ratio of outputs produced to inputs used.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision or choosing one option over another.

Opportunity Cost

The financial consequence of rejecting the subsequent optimal choice when deciding.