Author Question: As output moves from point a to point b to point c along the PPF in the above figure, the ... (Read 161 times)

roselinechinyere27m · **on:** Jun 29, 2018

As output moves from point a to point b to point c along the PPF in the above figure, the opportunity cost of one more unit of good X

A) rises. The opportunity cost of one more unit of good Y also rises.
B) rises. The opportunity cost of one more unit of good Y falls.
C) falls. The opportunity cost of one more unit of good Y rises.
D) falls. The opportunity cost of one more unit of good Y also falls.

Question 2

Ed is a freelance writer who could work for a newspaper at 25,000 a year but instead works for himself for 41,000 a year. His only business expenses are 1,000 for writing materials and 12,000 for rent. Ed's normal profit is 1,000.

Ed's economic profit from working as a freelance writer is A) 1,000.
B) 2,000.
C) 15,000.
D) 25,000.