Multiple Choice
Figure 1-7 shows the production possibilities boundary for an economy that produces two goods - cotton and bananas. FIGURE 1-7
-Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods - cotton and bananas,both measured in tonnes produced per year.If the economy moves from point C to point D,what is the opportunity cost of each extra tonne of bananas produced?
A) 0.036 tonnes of cotton
B) 0.36 tonnes of cotton
C) 3.6 tonnes of cotton
D) 36 tonnes of cotton
E) 360 tonnes of cotton
Correct Answer:

Verified
Correct Answer:
Verified
Q41: Many economies in central and Eastern Europe,including
Q61: Which of the following best describes the
Q66: Scarcity arises from limited resources.For this reason,all
Q79: A straight-line production possibilities boundary differs from
Q80: Madeleine allows herself $100 per month for
Q81: The table below illustrates that,in one day,Tristan
Q81: Consider the following list: a worker with
Q83: Suppose that one unit of labour can
Q85: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5441/.jpg" alt=" FIGURE 1-5 -Refer
Q99: A point lying inside the production possibilities