Author Question: Refer to the production possibilities frontier figure above. Which of the following movements ... (Read 61 times)

eruditmonkey@yahoo.com · **on:** Jun 29, 2018

Refer to the production possibilities frontier figure above. Which of the following movements requires the largest opportunity cost, in terms of good X forgone, per extra unit of good Y?

A) from point e to point d
B) from point d to point c
C) from point c to point b
D) from point b to point a

Question 2

The data in the above table indicate that when the price level is 120

A) firms have unexpectedly low inventories, so prices will rise.
B) inventories are at levels planned by firms.
C) firms will plan to increase the level of output.
D) firms have unexpectedly high inventories, so prices fall.