Refer to the Figure Shown, Which Represents the Production Possibilities

question 21

Multiple Choice

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B Which of the following statements is true? The opportunity cost of a truck in Country B is:

• A) 12 cars.
• B) 4 trucks.
• C) 1.5 cars
• D) 3 cars.

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Definitions:

Money-Based Trade

Transactions involving the exchange of goods or services for money, as opposed to barter trade, where goods are exchanged directly for other goods.

Consumer Sovereignty

The concept that consumers have the ultimate control over the goods and services produced by economies based on their preferences and spending choices.

Market System

An economic organization where choices relating to the investment in, production of, and distribution of goods and services are influenced by supply and demand dynamics, and where the prices are freely set in an open market pricing system.

Consumers Buy

Consumers buy refers to the action of individuals or households purchasing goods and services for personal use, driven by preferences, income, and prices.