Refer to Figure 18.2. The opportunity cost of producing spears in Macadamia is
A) 3/4 of a fishing pole. B) 5/6 of a fishing pole.
C) 6/5 fishing poles. D) 4/3 fishing poles.
C
You might also like to view...
What is one problem with using a Clarke tax to finance government provision of a public good?
a. People tend to overstate their preferences for the public good when a Clarke tax is imposed. b. The government may decide against providing the public good, even when it would be efficient to do so. c. The Clarke tax is not a fair tax, because everyone pays the same amount regardless of income. d. The revenues collected from the Clarke tax may not cover the cost of the public good.
Suppose that you and your four siblings are given an opportunity to purchase a video rental store. Each of you would put up $50,000 . The revenue from the store is expected to remain $350,000 per year for the next several years
The costs (not including the opportunity costs of your investment) of operating the store are expected to remain steady at $320,000 for the next several years. The current market rate of interest is 5 percent per year. Should you go in on this deal? Explain.
We use indifference curves because
A) households on average do not care. B) they help represent preferences. C) households sometimes make mistakes. D) they formalize the production process.
Explain some important situations where direct controls have a clear advantage over taxes