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C. perfectly horizontal. D. downward-sloping. Ans: D AACSB: Reflective Thinking Bloom’s: Understand Difficulty: 02 Medium Learning Objective: 02-01 Topic: The Production Possibility Model Feedback: The negative slope of a production possibility curve represents the opportunity cost concept—you get more of one benefit only if you get less of another benefit. [Question] 19. Refer to the production possibility curve for Ricardia below.

The graph indicates that with the resources and technology it has available, Ricardia: A. can produce either 40 units of rye or 20 units of eggs. B. can produce both 40 units of rye and 20 units of eggs. C. cannot produce both 20 units of rye and 10 units of eggs. D. cannot produce both 20 units of rye and 5 units of eggs. Ans: A AACSB: Reflective Thinking Bloom’s: Understand Difficulty: 02 Medium Learning Objective: 02-01 Topic: The Production Possibility Model Feedback: From this graph we can tell that with the given inputs, the following combinations are possible [eggs, rye]: (20, 0), (15, 10), (10, 20), (5, 30), and (0, 40).

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Test Bank for Economics 10th Colander  

Test Bank Economics 10th Edition Colander 2017 (Test Bank Download) (9781259193156) (1259193152). Instant access. All chapter are included....

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