Asked by
Jamaya Thomas
on Oct 13, 2024
Verified
If the economy were producing at point C and moves to point B
A) 4 units of capital goods are gained,while the capacity to produce 32 consumer goods are lost.
B) 16 units of capital goods are gained at an opportunity cost of producing 40 consumer goods.
C) 16 units of capital goods are gained at an opportunity cost of producing 72 consumer goods.
D) 4 units of capital goods are gained,while the capacity to produce 72 consumer goods are lost.
Opportunity Cost
The value of the best alternative forgone when a decision is made to pursue a particular action or resource allocation.
Capital Goods
Long-lasting goods that are used in the production of other goods or services, such as machinery, buildings, and equipment.
Consumer Goods
Goods purchased and used by consumers rather than manufacturers for producing other goods.
- Gain insight into the primary elements of production possibilities curves and the implications of opportunity costs.
- Illuminate the principle of opportunity cost in decision-making processes.
Verified Answer
MA
Learning Objectives
- Gain insight into the primary elements of production possibilities curves and the implications of opportunity costs.
- Illuminate the principle of opportunity cost in decision-making processes.