Table 3-22 Assume That Zimbabwe and Portugal Can Switch Between Producing Toothbrushes

question 156

Multiple Choice

Table 3-22
Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.
-Refer to Table 3-22. Suppose Zimbabwe decides to increase its production of toothbrushes by 10. What is the opportunity cost of this decision?

• A)0.3 hairbrush
• B)3 hairbrushes
• C)30 hairbrushes
• D)100 hairbrushes

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Definitions:

GDP

Summarizing the value of all final goods and services made within a country's borders in monetary or market terms during a specific time frame is what Gross Domestic Product is about.

GDP Deflator

A metric that assesses the prices of all new, internally produced final goods and services in an economic system, employed in the adjustment of nominal GDP to real GDP.

Real GDP

Real Gross Domestic Product (Real GDP) measures the value of all finished goods and services produced within a country's borders in a specific period, adjusted for inflation.

GDP

The total value of all produced goods and services within a country over a particular time period is what Gross Domestic Product (GDP) measures.