Using the production possibilities frontier model with two goods X and Y, the opportunity cost of producing one extra unit of X is: I. the quantity that we have to give up of Y II. increasing as more of X is produced III. decreasing as more of X is produced only I is correct I, II, and III are correct only III is correct both I and II are correct
Using the production possibilities frontier model with two goods X and Y, the opportunity cost of producing one extra unit of X is: I. the quantity that we have to give up of Y II. increasing as more of X is produced III. decreasing as more of X is produced only I is correct I, II, and III are correct only III is correct both I and II are correct
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 7SQ
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Using the
I. the quantity that we have to give up of Y
II. increasing as more of X is produced
III. decreasing as more of X is produced
only I is correct
I, II, and III are correct
only III is correct
both I and II are correct
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