Suppose that Sandy can produce 10 economic reports or make 2 sales calls. Suppose Tim can produce 2 economic reports or make 1 sales call. Which of the following is CORRECT?
A) The opportunity cost for Sandy of producing one economics report is 1/5 of a sales call.
B) The opportunity cost for Sandy of producing one sales call is 10 economics reports.
C) The opportunity cost for Tim of producing one sales call is 1/2 of an economics report.
D) The opportunity cost for Tim of producing one economics report is 2 sales calls.
A
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Every necessity is a normal good, but not all normal goods are necessities.
Answer the following statement true (T) or false (F)
Pareto improvements occur
a. through the tax system b. rarely in the real world c. when the economy has reached the point of economic efficiency d. when market exchanges take place e. when consumers are not perfectly informed
Economists consider price discrimination to always be undesirable.
Answer the following statement true (T) or false (F)
The foreign holdings of U.S. dollars
a. are hard to explain since the dollar is not legal tender outside the United States. b. have decreased substantially during the last decade. c. indicate that foreigners have confidence in the monetary policy and economy of the United States. d. are largely held in countries with a lengthy historical record of monetary and price stability.