The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
Silvia's opportunity cost of producing one pound of beef is ________ computer(s).
A. 25
B. 50
C. 1/50
D. 1/25
Answer: D
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The standard cut-off for cost per QALY is
a. equal to per capita income b. 2 times per capita income c. 3 times per capita income d. 4 times per capita income e. 5 times per capita income
Consider the production possibilities frontier displayed in the figure shown. A society faced with this curve currently:
A. cannot obtain point B.
B. can only obtain point C.
C. can only obtain point D or point A.
D. cannot obtain point C.
The model that shows the goods and services the economy is capable of producing is the model of:
A) utility. B) the fallacy of composition. C) production possibilities. D) scarcity.
Explain how GDP would return to equilibrium if it was above or below equilibrium GDP.
What will be an ideal response?