The figure above represents the production possibilities frontier for a country
a) The nation is currently producing at point B and wants to move to point C. What is the opportunity cost of the move?
b) The nation is currently producing at point B and wants to move to point A. What is the opportunity cost of the move?
a) By moving from point B to point C, the production of automobiles decreases by 1 million, from 3 million to 2 million. The 1 million decrease in automobiles is the opportunity cost of the movement.
b) By moving from point B to point A, the production of cameras decreases by 3 million, from 3 million to 0 million. The 3 million decrease in cameras is the opportunity cost of the movement.
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The smallest single component of M1 is
A) other checkable deposits. B) traveler's checks. C) savings account balances. D) demand deposits.
According to the information in Table 13.1, M2 is equal to
A) $840 billion. B) $1,062 billion. C) $1,692 billion. D) $1,862 billion.