Refer to Table 18.1. The opportunity cost of a glove in Panama is
A) 1/8 of a hat. B) 3/4 of a hat. C) 4/3 hats. D) 8 hats.
B
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In what way do owners of stocks have limited liability?
What will be an ideal response?
Writer Thomas Friedman asserts that "America is the greatest engine of innovation that has ever existed and it can't be duplicated anytime soon, because"
A. of its extreme freedom of thought. B. of its emphasis on independent thinking. C. of its steady immigration of new minds. D. of all of the factors listed.
Assume the marginal propensity to consume is 0.8. If consumer spending rises by $20 billion, then total income through the multiplier effect will:
a. Will not change b. Decrease by $100 billion c. Increase by $100 billion d. Increase by $10 billion
Other things equal, the stock of capital inherited by future generations is likely to be smaller when government spending:
A. is financed by taxation. B. increases during a period of recession, rather than prosperity. C. is financed by borrowing. D. is primarily for capital-type goods.