Consider two points on a PPF: point A, at which there are 500 oranges and 100 apricots, and point B, at which there are 501 oranges and 95 apricots. If the economy is currently at point B, the opportunity cost of moving to point A is
What will be an ideal response?
1 orange.
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Corruption
A) can create certainty B) is only a problem found in democratic societies C) is a problem of not enough government D) none of these choices
If a nation has "cheap labor,"
a. it can still benefit from trade. b. other nations can still compete with it. c. it cannot have a comparative advantage in everything. d. All of the above are true.
The following table shows the units of output a worker can produce per month in country A and country B. Country Food Electronics Country A 20 5 Country B 12 4 The opportunity cost of I unit of food in country A is
A. ¼ of a unit of electronics. B. ½ of a unit of electronics. C. 1/3 of a unit of electronics. D. All of these.
Under the gold standard, because all currencies had values fixed in units of gold
A) exchange rates were effectively fixed. B) there were no exchange rates. C) exchange rates were set to a crawling peg. D) none of the above