Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure.
According to Moe's PPC, moving from a 70 to an 80 in economics:
A. has a lower opportunity cost than moving from an 80 to a 90.
B. is unattainable.
C. has a higher opportunity cost than moving from an 80 to a 90.
D. is inefficient.
Answer: A
You might also like to view...
Both screening and signaling:
A. correct inefficiency in the market. B. allow more transactions to take place that are valuable to buyers and sellers. C. can increase surplus gained in a market. D. All of these statements are true.
If a country allows its currency's value to be determined in the market for foreign exchange, it has a:
A. fixed exchange rate. B. floating exchange rate. C. prime exchange rate. D. key exchange rate.
Which of the following is not a barrier to entry?
A) an inelastic demand curve B) economies of scale C) ownership of a key input D) a patent
GDP estimates account for which of the following items?
A. Do-it-yourself activities B. "Psychic income" people derive from their work C. Household spending for health and home insurance D. Improvements in product quality