If We Consider the Reality That Each Worker Has Different

question 22

Multiple Choice

If we consider the reality that each worker has different skills,then the production possibilities frontier

• A) would display a constant opportunity cost of a good as more of that good is produced.
• B) would display a decreasing opportunity cost of a good as more of that good is produced.
• C) would display an increasing opportunity cost of a good as more of that good is produced.
• D) cannot be drawn, as too many variables would need to be taken into consideration.

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Definitions:

Interest Rate

The price, calculated as a percentage of the amount borrowed, that a lender charges a borrower for the use of their savings for one year.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Explicit Cost

Direct payment made to others in the course of running a business, such as wages, rent, and materials.

Kitchen Equipment

Tools and appliances used in a kitchen for the preparation and cooking of food.