Given the production possibility curve shown below, the opportunity cost of listening to each additional album when moving from point B to point A is on average:
A. 1/2 article.
B. 1 article.
C. 2 articles.
D. 3 articles.
Answer:A
Given the production possibility curve shown below, the opportunity cost of listening to each additional album when moving from point B to point A is on average:
A. 1/2 article. B. 1 article. C. 2 articles. D. 3 articles.
Explanation: Moving from point B to point A means giving up 4 articles for 8 albums. Thus, the opportunity cost is 4/8, or 1/2 article.