Multiple Choice
If a country produces good Y (measured on the vertical axis) and good X (measured on the horizontal axis) ,then the absolute value of the slope of its production possibility frontier is equal to
A) the price of good X divided by the price of good Y.
B) the price of good Y divided by the price of good X.
C) the cost of capital (assuming that good Y is capital intensive) divided by the cost of labor.
D) the opportunity cost of good Y.
E) the opportunity cost of good X.
Correct Answer:
Verified
Correct Answer:
Verified
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