Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of pears per year. Which of the following statements about opportunity cost is CORRECT?
A) The opportunity cost of a ton of pecans is 2 tons of pears per ton of pecans for Missouri and 1/4 ton of pears per ton of pecans for Washington.
B) The opportunity cost of a ton of pears is 2 tons of pecans per ton of pears for Missouri and 1/4 ton of pecans per ton of pears for Washington.
C) The opportunity cost of a ton of pecans is 1/2 ton of pears per ton of pecans for Missouri and 4 tons of pears per ton of pecans for Washington.
D) Both answers B and C are correct.
D
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Given the budget line in the figure above, the combination of chips that is NOT affordable is
A) a. B) b. C) c. D) d.
If the economy in the graph shown is at point D, and the government wished to bring the economy back to its long-run equilibrium, it might:
A. increase government spending.
B. decrease income taxes.
C. increase corporate income taxes.
D. All of these would bring the economy back to potential GDP.
In most major countries, including Japan, Canada, and the US, fluctuations in consumption are
a) countercyclical and more volatile than GDP b) countercyclical and less volatile than GDP c) procyclical and more volatile than GDP d) procyclical and less volatile than GDP e) unrelated to fluctuations in GDP
What does the antitrust exemption give professional baseball team owners that owners of other professional teams don't have?
A. higher gate receipts B. wider marketing areas C. longer contracts with the players D. leverage over the cities in which they operate