Robinson Crusoe divides his time between catching fish and gathering fruit. Part of his production possibilities frontier is given in the above table. Mr. Crusoe, while lonesome, is efficient and always stays on his PPF. Mr.
Crusoe is consuming 20 pounds of fish. Then he decides to slowly become a vegetarian and decrease his consumption of fish to 9 pounds. This decision means that Mr. Crusoe will
A) incur an opportunity cost of 9 pounds of fruit.
B) incur an opportunity cost of 99 pounds of fruit.
C) be able to enjoy a gain of 9 pounds of fruit.
D) incur an opportunity cost of 20 pounds of fish.
E) incur an opportunity cost of 9 pounds of fish.
Question 2
The following government policies will help achieve faster economic growth EXCEPT
A) establishing and protecting property rights.
B) improving the quality of education.
C) discouraging saving and encouraging spending.
D) encouraging research and development.
E) increasing saving.
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