Figure 1.3.2 Monthly Production Possibilities for a Country Producing Only Hockey Sticks

question 106

Multiple Choice

Figure 1.3.2
Monthly Production Possibilities for a Country Producing Only Hockey Sticks and Maple Leaves

-According to Figure 1.3.2

• A) the opportunity cost of producing hockey sticks stays the same as more hockey sticks are produced.
• B) a combination of 3 hockey sticks and 9 maples leaves is possible.
• C) a combination of 3 hockey sticks and 2 maple leaves is possible.
• D) the opportunity cost of producing hockey sticks increases as more hockey sticks are produced.
• E) the opportunity cost of producing hockey sticks decreases as more hockey sticks are produced.

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Definitions:

GDP Price Index

An economic metric that accounts for inflation by converting output measured at current prices into constant-dollar GDP.

Fixed-Weight Price Index

A method of calculating inflation or deflation that uses predetermined weights for different categories of goods and services, regardless of their current market importance.

Chain-Weighted System

An inflation measure that adjusts the weights from year to year in calculating a price index, thereby reducing the bias caused by a fixed-price weighting system.

Nominal Gross Domestic Product (GDP)

The market value of all goods and services produced within a country in a given period, measured without adjusting for inflation.