Figure 2.5 Alt text for Figure 2.5: In figure 2.5, a graph compares paper and steel production.
Long description for Figure 2.5: The x-axis is labelled, steel in millions of tons and the quantities 14, 16, 19, and 20 are marked.The y-axis is labelled, paper in millions of tons, and the quantities 4, 9, and 11 are marked.Points Y(14, 9), W(16, 9), (19, 4), and an unnamed point (14, 11)are plotted on the graph, and joined to the respective axes using dotted lines.A concave curve is drawn from the y-axis to the x-axis, passing through the unnamed point (14, 11), and points W(16, 9), and X(19, 4).Point Y is between the curve and the axes.
-Refer to Figure 2.5. If this economy is currently producing at point X, what is the opportunity cost of moving to point W?
A)3 million tons of steel
B)5 tons of paper
C)7 tons of paper
D)19 tons of steel

Question

Figure 2.5  Alt text for Figure 2.5: In figure 2.5, a graph compares paper and steel production.
Long description for Figure 2.5: The x-axis is labelled, steel in millions of tons and the quantities 14, 16, 19, and 20 are marked.The y-axis is labelled, paper in millions of tons, and the quantities 4, 9, and 11 are marked.Points Y(14, 9), W(16, 9), (19, 4), and an unnamed point (14, 11)are plotted on the graph, and joined to the respective axes using dotted lines.A concave curve is drawn from the y-axis to the x-axis, passing through the unnamed point (14, 11), and points W(16, 9), and X(19, 4).Point Y is between the curve and the axes.
-Refer to Figure 2.5. If this economy is currently producing at point X, what is the opportunity cost of moving to point W?
A)3 million tons of steel 
B)5 tons of paper 
C)7 tons of paper 
D)19 tons of steel

Quizplus · Accepted Answer

Moving from point X to W involves giving up the production of 3 million tons of steel, with no change in paper production, hence the opportunity cost is 3 million tons of steel.

Figure 25 Alt Text for Figure 2