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a Macroeconomics Unit 1 Practice Sheet Part 1- Production Possibilities- Assume that the table below shows the economy of Cli'ordland. 7:6. Capital Goods Consumer Goods

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a Macroeconomics Unit 1 Practice Sheet Part 1- Production Possibilities- Assume that the table below shows the economy of Cli'ordland. 7:6." Capital Goods Consumer Goods Calculate the opportunity cost of switching from combination A to producing B. Calculate the opportunity cost of switching from combination B to producing D. Calculate the opportunity cost of switching from combination B to producing A. Calculate the opportunity cost of switching from combination D to producing B. PWN.' 5. Is this an example of increasing opportunity cost or constant opportunity cost? Explain. 6. Assume the economy of Cliffordland intentionally decides to produce combination D rather than combination B. What is the long-term trade-off of this decision? Explain

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