18
QuizMultiple Choice

Topic Test

Question 18 • LA-Financial Math A

The opportunity cost of a decision can be examined by using a

Answer
A
production possibilities graph.
B
factors of production chart.
C
global trade-off grid.
D
graph of increasing costs.

Explanation

A production possibilities graph shows the different combinations of two goods an economy can produce with its resources. Moving from one point to another shows what must be given up, which is the opportunity cost. Therefore, the correct choice is a production possibilities graph.

AI-written and checked against the verified answer.

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