Question

Iceland produces two goods: Viking hats (Y) and fish (X). Its production possibilities frontier is characterized as: Y = 50 – 2X. The opportunity cost of catching (producing) an additional unit of fish in Iceland is a. increasing in fish production. b. constant in fish production. c. decreasing in fish production. d. unable to be determined from the information given.

Answer 1

Answer: C

Explanation: from the given function Y=50-2X, Y is the dependent variable which represent the Viking Hat, while X is the independent variable representing Fish production.