Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
B → A → C → D
B
B → D → A → C
C
A → B → C → D
D
B → A → D → C
Understanding the Answer
Let's break down why this is correct
Answer
To analyze opportunity costs when shifting resources from good Y to good X using a production possibilities curve (PPC), you first need to identify the resources currently allocated to good Y. Once you know which resources you are using for good Y, you can evaluate the potential increase in production of good X by reallocating those resources. After determining how much more of good X you can produce, you then calculate the opportunity cost, which is what you give up in terms of good Y. Finally, you assess the new production point on the PPC to see how this change affects overall production. For example, if moving resources allows you to produce 10 more units of good X but reduces good Y by 5 units, your opportunity cost is 5 units of good Y for the 10 units of good X.
Detailed Explanation
First, you need to see what resources are used for good Y. Other options are incorrect because This option suggests checking the new production point before knowing how much you can increase good X; This option starts with evaluating good X before identifying resources for good Y.
Key Concepts
Opportunity Costs
Production Possibilities Curve (PPC)
Resource Allocation
Topic
Analyzing Opportunity Costs
Difficulty
hard level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.