econ 105_tut question_chapter 1_sfu_answer0

Opportunity cost the slope of the ppb is negative

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Unformatted text preview: sen. Opportunity Cost: The slope of the PPB is negative, revealing the opportunity cost that is unavoidable every time a choice is made. For the economy as a whole, the decision to produce more of one good must involve a decision to produce less of some other good. 2. Consider an economy that produces only food and clothing. Its production possibility boundary is shown below. 1 SFU Econ 105 Week 2 Summer 2013 a. If the economy is at point A, how many tonnes of clothing and how many tonnes of food are being produc...
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