A country produces only apples and bananas. Moving from point A to point B along its production possibilities frontier, 5 apples are gained and 4 bananas are forgone. What is the opportunity cost of an apple?
A) 4/5 of a banana
B) 5/4 of a bananas
C) 4 bananas
D) 1 apple
E) None of the above answers is correct.
A
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Specialization and the division of labor typically result in
A) cost overruns. B) increased output. C) decreased output. D) a greater reliance upon imports.
Which of the following phrases indicates that income is being spoken of?
a. Tuesday, at 12:30 p.m. b. July 14, 1948 c. from January 1 to March 30 d. yesterday afternoon
A structural deficit refers to that part of the deficit that exists as a result of a downturn in economic activity
Indicate whether the statement is true or false
Which does an expanding economy NOT do?
A. Free up resources for the public sector B. Allow the middle class to enjoy more luxuries C. Create a lower real GDP D. Boost living standards for the poor