In one year, a weapons plant can manufacture either 1,000 more guns or 50 more tanks. The plant's opportunity cost of an extra gun is approximately
a. 50 tanks
b. 20 guns
c. 20 tanks
d. 1/20 of a tank
e. 1/50 of a tank
D
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Firms often seek to borrow money to expand their capital stock, and the price they pay for the money is the interest rate. What happens to supply of money if the interest rate increases?
a. It increases. b. It decreases. c. It does not change. d. Uncertain-economic theory has no answer to this question.
The price mechanism deals _____ with the issue of an equitable income distribution and ____ with the issue of efficiency.
A. well; well B. poorly; poorly C. well; poorly D. poorly; well
If an economy can increase its steady annual growth rate from 2 percent to 3 percent, this reduces the time it takes for the economy to double in size by __________ years
A) 5 B) 8 C) 12 D) 17 E) 20
________________________: price concessions from the seller, the expected cost of expenditures must be added to the observed transaction price, if, in fact, the expenditures were made after the acquisition.
Fill in the blank(s) with the appropriate word(s).