An Economy Can Produce the Following Combinations of Goods: 50X

question 23

Multiple Choice

An economy can produce the following combinations of goods: 50X and 0Y,40X and 10Y,30X and 20Y,20X and 30Y,10X and 40Y,and 0X and 50Y.The production possibilities frontier (PPF) for the economy is

• A) concave downward because the opportunity cost of producing the 10th unit of Y is greater than the opportunity cost of producing the first unit of Y.
• B) a straight (downward-sloping)line because the opportunity cost of producing the two goods is constant.
• C) concave downward because the opportunity cost of producing the 40th unit of Y is less than the opportunity cost of producing the 10th unit of Y.
• D) a straight (downward-sloping)line because the opportunity cost of producing the 10th unit of X is greater than the opportunity cost of producing the 40th unit of X.
• E) a straight (downward-sloping)line because the opportunity cost of producing the 30th unit of Y is greater than the opportunity cost of producing the 30th unit of X.

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Definitions:

Common Sense

A pamphlet written by Thomas Paine in 1776 advocating for American independence from Britain through plain and persuasive arguments.

Balance of Power

A principle in international relations whereby nations strive to ensure that no single state or alliance becomes disproportionately powerful, aiming to prevent dominance.

Eighteenth-Century Diplomacy

Refers to the conduct of international relations and negotiation tactics among European powers in the 18th century.

Bill of Rights 1689

A historic English document that laid down limits on the powers of the crown and established the rights of Parliament and rules for freedom of speech.