Suppose that the country of Utopia produces only steel and coffee.In 1998,Utopia produced 900 tons of steel and 500 pounds of coffee,while in 1999,it produced 1,000 tons of steel and 550 pounds of coffee.Assume that no technological changes occurred in the production of either good and the resource endowment of Utopia did not change.Which of the following is true?
A) Utopia's opportunity cost of producing additional steel is 50 pounds of coffee.
B) Utopia's production must have been productively inefficient in 1998.
C) Utopia's opportunity cost of producing additional steel is 1/2 pound of coffee per ton of steel.
D) Utopia's opportunity cost of producing additional coffee is 100 tons of steel.
E) The production point in 1998 was unattainable given then-current resources and technology.
Correct Answer:
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Q24: Figure 2-3 Q25: According to the law of increasing opportunity Q26: Figure 2-8 Q28: Figure 2-8 Q29: Two reasons why an economy might operate Q30: If an economy's production possibilities frontier shifted Q31: The production possibilities frontier can be used Q32: Figure 2-7 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
