Question : 14) The figure above shows the production possibilities frontier for : 1241453

 

 

14) The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and B is

A) 4 gallons of ice cream for a gallon of milk.

B) 3 gallons of ice cream for a gallon of milk.

C) 1 gallon of ice cream for a gallon of milk.

D) 1/3 of a gallon of ice cream for a gallon of milk.

E) zero because at point A zero milk is being produced.

 

15) The figure above shows the production possibilities frontier for a country. If the economy is operating at point B, then the opportunity cost of another million gallons of milk is

A) 4 gallons of ice cream for a gallon of milk.

B) 3 gallons of ice cream for a gallon of milk.

C) 1 gallon of ice cream for a gallon of milk.

D) 1/3 of a gallon of ice cream for a gallon of milk.

E) zero because after producing another million gallons of milk then zero gallons of ice cream are produced.

 

16) The above figure shows the production possibility frontier for a country. Suppose the country is producing at point A. What is the opportunity cost of increasing the production of rice to 12 tons?

A) 15 thousand bottles of wine

B) 6 thousand bottles of wine

C) 9 thousand bottles of wine

D) 12 tons of rice

E) Nothing, it is a free lunch.

 

17) The above figure shows the production possibility frontier for a country. Suppose the country is producing at point D. What is the opportunity cost of increasing the production of rice to 15 tons?

A) 9 thousand bottles of wine

B) 6 thousand bottles of wine

C) 15 thousand bottles of wine

D) 12 tons of rice

E) Nothing, it is a free lunch.

18) The above figure shows the production possibility frontier for a country. Suppose the country is producing at point E. What would be the opportunity cost to increase the production of wine to 9 thousand bottles?

A) 12 tons of rice

B) 15 thousand bottles of wine

C) 9 thousand bottles of wine

D) 3 tons of rice

E) Nothing, it is a free lunch.

 

19) The above figure shows the production possibility frontier for a country. Suppose the country is producing at point D. What would be the opportunity cost to move to point C?

A) 6 thousand bottles of wine

B) 15 thousand bottles of wine

C) 12 tons of rice

D) Nothing, it is a free lunch.

E) This movement is not possible without economic growth.

 

20) The above figure shows the production possibility frontier for a country. Suppose the country is producing at point A. What would be the opportunity cost to increase the production of rice to 12 tons?

A) 6 thousand bottles of wine

B) 15 thousand bottles of wine

C) 9 thousand bottles of wine

D) 6 tons of rice

E) Nothing, it is a free lunch.

21) The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point B to point D?

A) 1000 bottles of wine

B) 500 bottles of wine

C) 2 bottles of wine

D) 1/2 of a bottle of wine

E) None of the above answers is correct.

 

22) The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point D to E?

A) 3000 bottles of wine

B) 333 bottles of wine

C) 3 bottles of wine

D) 1/3 of a bottle of wine

E) None of the above answers is correct.

 

23) The above figure shows the production possibility frontier for a country. What is the opportunity cost to move from point D to point E?

A) 6 thousand bottles of wine

B) 15 thousand bottles of wine

C) 6 tons of rice

D) 9 thousand bottles of wine

E) Nothing, it is a free lunch.

24) The above figure shows the production possibility frontier for a country. What is the opportunity cost to move from point D to point B?

A) 12 tons of rice

B) 15 thousand bottles of wine

C) 6 thousand bottles of wine

D) 9 thousand bottles of wine

E) Nothing, it is a free lunch.