Author Question: In the table above, country A is producing 4 units of X and 8 units of Y and country B is producing ... (Read 74 times)

Wadzanai · **on:** Jun 29, 2018

In the table above, country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. The opportunity cost of producing more of

A) good X is the same for both countries.
B) good Y is the same for both countries.
C) good X is lower in country A.
D) good Y is lower in country A.

Question 2

As Judy moves down along her budget line, ________.

A) the opportunity cost of the good measured along the x-axis increases
B) the opportunity cost of the good measured along the y-axis increases
C) her income decreases
D) her income does not change and neither does the relative price of the goods