Question

Computers Cars Output Combination A 200 Output Combination B 190 0 10 Output Combination C170 20 Output Combination D 140 Output Combination E 100 40 30 If we were to graph the above production schedule, the PPC would be: upward sloping non-linear representative of increasing opportunity costs representative of interchangeable resources two of the above are correct Question 7 (1 point) Which of the following movements would entail the greatest opportunity cost of expanded car production on the graph above? a to b b to c c to d d to e all production combinations are indicative of constant opportunity costs

Answer 1

Combination	Computers	Cars	Change in Computer	Change in Car	Opportunity cost of Car to Computer
A	200	0
B	190	10	-10	10	-1
C	170	20	-20	10	-2
D	140	30	-30	10	-3
E	100	40	-40	10	-4

Q6. Option 4. As it represents how the output can be changed between two goods and cost associated with it
Q7. Option 4. As in order to get 1 extra car it has to forgo 4 computers
Q8. Option 4. As it can produce 140 computers and the combination lies inside the graph
Q9. Option 2. As the combination lies on the line
Q10. Option. As the combination falls outside the line