21.) A movement from point N to point L would represent A. B. an increase in bot
ID: 1155888 • Letter: 2
Question
21.) A movement from point N to point L would represent A. B. an increase in both consumer goods and capital goods. a decrease in both consumer goods and capital goods. Can increase in consumer goods, but a decrease in capital goods an increase in capital goods, but a decrease in consumer goods. D. 22.) The opportunity cost of a movement from point N to J would A. B. C. D. be the lost production of some capital goods. be the lost production of some consumer goods. be slower economic growth in the future. not involve any sacrifice of either capital or consumer goods. If the economy were producing at point E and moved to point B the opportunity cost in terms of lost production of outboard motors would be 23.) A. B. C. D. 16 units of outboard motors. 14 units of outboard motors. 12 units of outboard motors. 10 units of outboard motors. 2-5Explanation / Answer
21.
As it can be seen in the diagram, that when there is movement from point N to L, shows that there is an increase in the production of consumer goods while there is a decrease in the capital goods.
Hence option C is the correct answer.
22.
As it can be seen in the diagram, that when there is movement from point N to J, then the opportunity cost would be how unit of consumer goods have been sacrificed.
Hence the opportunity cost will be the lost production of some consumer.
Hence option B is the correct answer.
23.
Opportunity cost can be defined as the lost production of any goods when more unit of another goods is produced.
As it can be seen in the diagram, that when initially economy was at point E, then economy moved to point B, then the opportunity cost in terms of Lost production of outboard motors would be 12 unit of outboard motor.
This is because at point E, 16 unit of outboard motors but at point B, 4 unit of outboard motor are produced.
Hence option C is the correct answer.
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