Question
Hello, I am studying economics at ITAM, we are currently viewing the Production Possibilities Frontier. My question is regarding a test that I had, they
Hello,
I am studying economics at ITAM, we are currently viewing the Production Possibilities Frontier. My question is regarding a test that I had, they sent the answers back to us, but I still don't understand why the answer is such.
The two questions i have doubt with are the following:
a.) If this person chooses to consume basket A, it must be true that the number of units of good Y that they would be willing to sacrifice for one more unit of good X.
Is:
-more or equal to one
-exactly equal to four
-exactly equal to one
-less or equal to one (this is the correct one)
-more or equal to four
b.) If this person chooses to consume basket C, it must be true that the number of units of good Y that they would be willing to sacrifice for one more unit of good X at this point.
Is:
-less or equal to one
-more or equal to four
-exactly equal to one
-exactly equal to four
-more or equal one but less or equal to four (this is the correct one)
This is the graph
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