The concept of opportunity cost
A) cannot be explained by using a production possibilities frontier.
B) explains that goods are swapped for other goods.
C) implies that when a person is more efficient in the production of one good, he should produce that good and exchange it for some good that he is relatively less efficient at producing.
D) implies that a double coincidence of wants must be present for exchange to take place.
E) implies that because productive resources are scarce, we must give up some of one good to acquire more of another.
Correct Answer:
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Q1: If Harold can increase production of good
Q1: Opportunity cost of an action is
A)the best
Q3: A point inside a production possibilities frontier
A)indicates
Q5: Production efficiency is achieved when
A)the production possibilities
Q6: Use the figure below to answer the
Q7: Use the figure below to answer the
Q8: Which one of the following concepts is
Q8: If Sam is producing at a point
Q10: A tradeoff exists when
A)we move from a
Q19: Ted chooses to study for his economics
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