The figure above shows the production possibilities frontier for a country. If the economy is operating at point B, then the opportunity cost of another million gallons of milk is
A) 4 gallons of ice cream for a gallon of milk.
B) 3 gallons of ice cream for a gallon of milk.
C) 1 gallon of ice cream for a gallon of milk.
D) 1/3 of a gallon of ice cream for a gallon of milk.
E) zero because after producing another million gallons of milk then zero gallons of ice cream are produced.
B
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_____ constraints refer to your limited ability to process valuable information
a. Ethical b. Informational c. Physical d. Psychological
The marginal propensity to consume is
A. disposable income divided by consumption. B. the change in consumption divided by the change in disposable income. C. consumption divided by disposable income. D. the change in disposable income divided by the change in consumption.
Empirical evidence suggests that money is not always neutral, which is consistent with
a. an equilibrium business-cycle model. b. a price-misperceptions model. c. a real business-cycle model. d. a wage-imperfections model.
Why were economists concerned about the timing of President Trump's major tax cut law that was enacted in December 2017?
What will be an ideal response?