Refer to Figure 1.7.The cost of producing at point G rather than point D is
A)OA units of food.
B)KL units of clothing.
C)AB units of food.
D)OL units of clothing.

Question

Refer to Figure 1.7.The cost of producing at point G rather than point D is
A)OA units of food. 
B)KL units of clothing. 
C)AB units of food. 
D)OL units of clothing.

Quizplus · Accepted Answer

The cost of producing at point G rather than point D is the difference in the amount of food that must be given up to produce one additional unit of clothing. This is represented by the slope of the production possibility frontier (PPF) between points G and D, which is given by the ratio OL/AJ. Therefore, the cost is OL units of clothing for each AJ units of food, which corresponds to answer choice C.

As for the best choice(s), it will depend on the preferences and needs of the individual or society. The PPF represents the maximum output that can be produced with the given resources and technology, but it does not indicate which combination of goods is most desirable. This will depend on factors such as consumer preferences, availability of substitutes, and social priorities.