Asked by Zeina Samarneh on Jul 21, 2024
Verified
Abe starts exercising regularly,and after a few months he can do twice as much of everything.In a single day,Abe can now make 10 hamburgers or 8 milkshakes,rather than the 5 hamburgers and 4 milkshakes he made in the past.We now know that Abe's production possibility frontier has _____,but his opportunity costs of making milkshakes have _____.
A) shifted right;not changed
B) shifted right;decreased
C) not changed;increased
D) not changed;decreased
Production Possibility Frontier
A curve depicting the maximum attainable combinations of two products that may be produced with available resources.
Opportunity Costs
The disclaim of potential advantage from other options when a particular choice is favored.
Exercising Regularly
The routine practice of engaging in physical activity to maintain or improve health and fitness.
- Comprehend the connection between economic expansion and the outward movement of the production possibility frontier.
- Understand the principle of opportunity cost within decision-making frameworks.
Verified Answer
MJ
Michelle JezberaJul 27, 2024
Final Answer :
A
Explanation :
Abe's production possibility frontier has shifted right because he is now able to produce more of both hamburgers and milkshakes. However, his opportunity cost of making milkshakes has not changed because he still has to give up the same amount of hamburgers in order to make each milkshake.
Learning Objectives
- Comprehend the connection between economic expansion and the outward movement of the production possibility frontier.
- Understand the principle of opportunity cost within decision-making frameworks.