Refer to Table 2.3, which shows the production possibilities frontier between the production of capital goods and consumer goods in an economy. What is the opportunity cost of producing 3 units of capital goods at point D?
Table 2.3
Products A Capital goods 0 Consumer 40 goods
B C D E 1 2 3 4 35 20 7 0
a. 35 units of capital goods.
b. 13 units of consumer goods.
c. 7 units of consumer goods.
d. 15 units of consumer goods.
e. 5 units of consumer goods.
b. 13 units of consumer goods.
You might also like to view...
A demand schedule shows the time over which different quantities will be demanded.
Answer the following statement true (T) or false (F)
In a country with a working-age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?
A) 100 percent B) 90 percent C) 65 percent D) 5 percent
Pollution and other negative exernalities arise because there are no practical, enforceable, private property rights to open-access resources, such as air
Indicate whether the statement is true or false
Suppose the required reserve ratio is 20%. What is the maximum amount of total money supply that can be created from an initial deposit of $200? In general, why might the actual amount of total money creation be less than the maximum?