Author Question: To find the opportunity cost of producing one more unit of any product while on the production ... (Read 74 times)

formula1 · **on:** Jun 29, 2018

To find the opportunity cost of producing one more unit of any product while on the production possibilities frontier requires

A) subtracting the change in the product whose production increased from the change in the product whose production decreased.
B) dividing the amount of the product forgone by the amount of the product gained.
C) setting the amounts of the two products equal to each other.
D) setting the change in one product equal to the change in the other product.
E) None of these describes how to find opportunity cost.

Question 2

A reason why many of the third world countries are not achieving an increase in their standard of living is that they

A) don't have a strong central government.
B) don't have strong military power to force people to work harder.
C) don't have social institutions with a strong rule of law and economic freedom.
D) strongly encouraged international trade.
E) don't have enough natural resources.