O a movement from one point along the PPF to another point a

O a movement from one point along the PPF to another point along the same PPP O none of the above 7. Jose has one evening in which to prepare for two exams and can employ two possible strategles: Score in Score in Statistics Strategy 94 79 90 The opportunity cost of receiving a 90 on the Statistics exam in terms of the number of points on the Economics exam is O 17 O 11 O 90 13 8 what is the reason for the law of increasing opportunity costs? O There is no reason it just is People have varying abilities and those with lower opportunity costs of producing a good produce it before people with higher opportunity costs produce it O The price of a good rises as more of t is demanded O As more of a good is produced, the taxes applied to the production of the good rise O c and d

Solution

7. According to strategy A, Jose will score 94 in economics and 79 in statistic and according to strategy B Jose will score 77 in economics and 90 in statistic.

If Jose wants to score 90 in statistic then he has to sacrifice the economics marks by 17 (i.e., he can score 94 in strategy A) and would score 77 in economics.

So, the opportunity cost of scoring 90 marks in statistic in terms of economic marks is 17.

So, the correct answer is 17.

8.the law of increasing opportunity cost says that if we increase the production of one good, then the opportunity cost of producing that good would increase. The reason for that is not all resources are equal on abilities and not meant to suited all goods production equally. Some resources are better is producing certain goods and services.

So, the correct answer is an option (B).