Given Below Is the Production Possibilities Schedule for Capital Goods

question 13

Multiple Choice

Given below is the production possibilities schedule for capital goods and consumer goods. Table 2.3
If the nation depicted in Figure 2.3 is producing at combination E, the opportunity cost of producing the tenth unit of consumer good is:

• A)10 units of capital goods.
• B)6 units of capital goods.
• C)1 unit of capital good.
• D)4 units of capital goods.
• E)zero unit of capital good.

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Definitions:

Export Quota

A government-imposed limit on the quantity of a specific good that can be exported over a given period, used to control trade balances.

Domestic Consumption

This term refers to the total amount of goods and services consumed within a country's borders, indicating the level of domestic demand.

Tariff

A tax imposed by a government on imported or exported goods.

Protected

Shielded from harm, damage, or unwanted access, often through legal or regulatory means.