Submit Qu Quiz Chapter 2 Check Your Understanding Assignment

Submit Qu Quiz: Chapter 2 Check Your Understanding Assignment : 1 pt |9 of 23 (8 complete) This Quiz: 23 pts possi This n 1 hour, All can catch 15 fish or pick 30 oranges. Ho works 8 hours per day, sponding 5 hours fishing and 3 hours picking oranges. Ali\'s opportunity cost of catching 1 fish is O A. 5hours per day O B. 1/2 of an orange. O C. 2 oranges. D. 20 minutes. Click to select your answer. 002 khalij

Solution

Question 19. Ali can catch 15 fish or 30 oranges in one hour. Therefore the opportunity cost of catching one fish is 30 / 15 which is 2 oranges. Option C is correct

Question 20. Option A is correct. The reason for the increasing opportunity cost along the PPF is the fact that the resources are not perfect substitutes between two goods which the economy is producing. Therefore when one good is produced and resources are withdrawn from this good to another good their productivity or efficiency is reduced and hence opportunity cost is increased.

Question 21. Option A is correct. Households provide factor services and in return they earn income while firms hire these households as factors of production and they help in manufacturing of goods.

Question 22. Economic growth results when more resources are available or the technology of using them becomes more efficient. Option C is correct.