(Table: Production Possibilities Schedule II) Use Table: Production Possibilities Schedule II.If an economy is producing at X,the opportunity cost to it of producing at Y is _____ units of consumer goods per period.

A) 2
B) 1
C) 6
D) 18

Question

Ahmed Rucic · Accepted Answer

Final Answer : C, Explanation :  To find the opportunity cost of producing at Y when the economy is producing at X, we need to look at the amount of consumer goods that would be given up to produce one additional unit of capital goods. From X to Y, the economy would need to give up 3 units of consumer goods (decreasing from 17 to 14) to produce 1 additional unit of capital goods (increasing from 3 to 4). Therefore, the opportunity cost of producing at Y is 3 units of consumer goods per period. Choice C (6 units) is not a possible answer.

(Table: Production Possibilities Schedule II) Use Table: Production Possibilities Schedule II.If an economy is producing at X,the opportunity cost to it of producing at Y is _____ units of consumer goods per period.

A) 2
B) 1
C) 6
D) 18

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Learning Objectives

Related questions

(Table: Production Possibilities Schedule II) Use Table: Production Possibilities Schedule II.If an economy is producing at X,the opportunity cost to it of producing at Y is _____ units of consumer goods per period.A) 2B) 1C) 6D) 18

Definitions

Learning Objectives

Learning Objectives

Related questions

(Table: Production Possibilities Schedule II) Use Table: Production Possibilities Schedule II.If an economy is producing at X,the opportunity cost to it of producing at Y is _____ units of consumer goods per period.

A) 2
B) 1
C) 6
D) 18