Free Core Economic Concepts and Quantitative Foundations Quiz

Core Economic Concepts and Quantitative Foundations

Question 1 of 5

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Evidence for analysis

Evidence	Value
Combination B	Consumer 40; Capital 80
Combination C	Consumer 60; Capital 60
Movement	Along the same PPC

On a PPC, B is 40 consumer goods and 80 capital goods; C is 60 consumer goods and 60 capital goods. The economy moves from B to C. Which interpretation is most defensible?

Select one option.

The opportunity cost is 30 capital goods
The opportunity cost is 20 capital goods and resources are reallocated toward consumer goods
The PPC has shifted outward
Productive efficiency has fallen necessarily
Scarcity has been eliminated

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