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  1. Topics
  2. Business
  3. Macroeconomics Study Set 48
  4. Quiz 2: Economic Models: Trade-Offs and Trade

(Table: Production Possibilities Schedule I) Use Table: Production Possibilities Schedule

Question 18
Multiple Choice

(Table: Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. If the economy produces 4 units of consumer goods per period, it also can produce, at MOST, _____ units of capital goods per period. A) 30 B) 28 C) 10 D) 18

Related questions
Q 19
(Table: Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. If the economy produces 24 units of capital goods per period, it also can produce, at MOST, _____ units of consumer goods per period. A) 5 B) 4 C) 3 D) 2
Q 20
(Table: Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. The opportunity cost of producing the third unit of consumer goods is _____ units of capital goods. A) 2 B) 4 C) 6 D) 8
Q 21
(Figure: Guns and Butter) Use Figure: Guns and Butter. On this figure, points A, B, E, and F: A) indicate combinations of guns and butter that society can produce using all of its factors efficiently. B) indicate increasing opportunity costs for guns but decreasing opportunity costs for butter. C) indicate that society wants butter more than it wants guns. D) indicate constant opportunity costs for guns and increasing costs for butter.
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