Use Exhibit 1. Which of the following statements is (are) correct? Exhibit 1 Production Possibilities Trucks Cars 1,000 0 800 1,600 500 2,700 0 3,500 x The opportunity cost of the first 500 trucks is 800 cars and the opportunity cost of the first 1,600 cars is 200 trucks. y If the economy produces 800 trucks and 1,600 cars instead of 500 trucks and 2,700 cars, then the opportunity cost of the 300 additional trucks is 1,100 cars. z The opportunity cost of the 2,000th car is more than 0.285 of a truck and the opportunity cost of the 150th truck is less than 1.50 cars. Select one: O a. x, y, and z O b. x and y, only O c. x and z, only O d. y and z, only O e. y onlyUse Exhibit 2. Point F is the output combination of 7,500 cars and 100 airplanes. Which of the following is (are) correct? Exhibit 2 Cars 12,000 9,000 6,000 3,000 43 83 120 150 Airplanes x The opportunity cost of the rst 7,500 cars is 60 airplanes and the opportunity cost of the first 100 airplanes is 4,500 cars. y The opportunity cost of the 40th airplane is more than 48 cars and the opportunity cost of the 120th airplane is greater than 125 cars but less than 135 cars. 2 The opportunity cost of the 2,500th car is more than 0.0075 airplane but less than 0.0085 airplane and the opportunity cost of the 10,000th car is more than 0.0215 airplane. Select one: '13' a, x, y, and z '13' b. x and y, only (3' c. x and 2, only (3' cl. y and 2, only Use Exhibit 1. Which of the following statements is (are) correct? Exhibit 1 Production Possibilities Trucks Car 1,000 0 800 1,600 500 2,700 0 3,500 x A choice to produce 2,700 cars and 500 trucks would reflect an efficient amount of production. y If this economy was producing 800 trucks and 1,500 cars, then reducing unemployment would allow this economy to produce 800 trucks and 1,600 cars. z If some capital is idle and some laborers are unemployed then this economy would produce less than 500 trucks if it was producing 2,700 cars Select one: O a. x, y, and z O b. x and y, only O c. x and z, only O d. y and z, only O e. z onlyWonderland has three groups of citizens. There are 5,000 people in each group and the annual income of each person in the group is $15,000, $25,000 and $35,000, respectively. If income is a correct reection of opportunity cost, then the annual opportunity cost of conscripting (drafting) 100 full-time soldiers from each group is Select one: Q a. $4,500,000 '3' b. $6,000,000 '3' (3. $6,500,000 '3' d. $7,500,000 '3' e. $9,000,000 Which of the following statements is (are) correct? x When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other does not depend on how much of each good is being produced. y Production possibilities frontiers are usually bowed outward because resources are specialized, that is, some are better at producing particular goods rather than other goods. 2 The trade-off between the production of one good and the production of another good can change over time because of technological advances or a change in the availability of resources. Select one: :I:- a, x, y, and z (3- b. x and y, only