Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost for Canada is:
A. ½ pair of shoes for every 2 apples.
B. 2 pairs of shoes for each apple.
C. ½ apple for each pair of shoes.
D. 2 apples for each pair of shoes.
Answer: D
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Indicate whether the statement is true or false
Korie wants to start her own business making custom furniture. She can purchase a factory that costs $400,000 . Korie currently has $500,000 in the bank earning 3 percent interest per year. Suppose Korie purchases the factory using $200,000 of her own money and $200,000 borrowed from a bank at an interest rate of 6 percent. What is Korie's annual opportunity cost of purchasing the factory?
a. $3,000 b. $6,000 c. $15,000 d. $18,000
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A. Frictionally B. Structurally C. Cyclically
Refer to the above table. For which prices is demand inelastic?
A. in a range of prices below $6.00 B. in a range of prices above $9.00 C. in a range of prices above $6.00 D. in a range of prices between $5 and $1