Assume that a consumer has a given budget or income of $12, and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. Refer to the information given above. For this consumer, the
opportunity cost of buying two bananas is
A. 1 apple.
B. 1.5 apples.
C. 0.5 apple.
D. 0.75 apple.
Answer: A
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In general, the only thing that can cause a sustained increase in the rate of inflation is: a. a high rate of growth in the supply of money. b. a significant increase in unemployment
c. a decrease in real GDP. d. an increase in federal income taxes.
Net exports is a positive number when:
A. a nation's exports of goods and services exceed its imports. B. depreciation is greater than gross private domestic investment. C. gross private domestic investment is greater than depreciation. D. a nation's imports of goods and services exceed its exports.
A private good with external benefits is a public good.
Answer the following statement true (T) or false (F)
One problem with third-party financing of health care is that
A) people have more incentive to utilize health care. B) demand falls so that suppliers cannot take advantage of economies of scale. C) it reduces the quality of health care people receive. D) it discourages people from relying on their physicians' advice in making health care decisions.