When we look at a production possibilities curve, the opportunity cost can be understood as
A) The point of maximum production of one good
B) The amount of the other good that must be given up for one more unit of production
C) The total cost of producing the good
D) The price people will pay for the additional amount produced
B
You might also like to view...
The supply curve for bonds has the usual upward slope, indicating that as the price ________, ceteris paribus, the ________ increases
A) falls; supply B) falls; quantity supplied C) rises; supply D) rises; quantity supplied
To produce 100 bushels of wheat, Farmer A requires fewer inputs than does Farmer B. We can conclude that Farmer A has an absolute advantage over Farmer B in producing wheat
a. True b. False Indicate whether the statement is true or false
The branch of economics that studies the decisions made by individuals and firms is called macroeconomics
Indicate whether the statement is true or false
If the productivity of labor falls, its MPP will _____ and its MRP will _____.
A. rise; rise B. fall; fall C. rise; fall D. fall; rise