The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes. FIGURE 32-2
-Refer to Figure 32-2.The diagrams illustrate that the ________ is lower in Austria than in Switzerland.

Question

The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes.  FIGURE 32-2
-Refer to Figure 32-2.The diagrams illustrate that the ________ is lower in Austria than in Switzerland.

Quizplus · Accepted Answer

The production possibilities curve (PPC) for Austria has a steeper slope than that of Switzerland, indicating a higher opportunity cost of producing bicycles, and consequently, a lower opportunity cost of producing shoes. Therefore, the answer is A, the opportunity cost of producing shoes is lower in Austria than in Switzerland.

The Following Diagrams Show the Production Possibilities Boundaries for Austria