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The Figure Above Shows the Production Possibilities Frontier for a Country

Question 1

Multiple Choice

   The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and B is A) 3 gallons of ice cream for a gallon of milk. B) 1/3 of a gallon of ice cream for a gallon of milk. C) 4 gallons of ice cream for a gallon of milk. D) 1 gallon of ice cream for a gallon of milk. E) zero because at point A zero milk is being produced.

The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and B is


A) 3 gallons of ice cream for a gallon of milk.
B) 1/3 of a gallon of ice cream for a gallon of milk.
C) 4 gallons of ice cream for a gallon of milk.
D) 1 gallon of ice cream for a gallon of milk.
E) zero because at point A zero milk is being produced.

Correct Answer:

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