Refer to Table 7-6. Prior to trade, what was the opportunity cost to produce 1 belt in Morocco?
A) 1/2 of a sword B) 1 sword C) 1.5 swords D) 2 swords
B
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Opportunity cost always arises when a trade-off decision is made.
Answer the following statement true (T) or false (F)
How will an interest rate decrease in the United States affect equilibrium in the foreign exchange market?
A) The equilibrium exchange rate will increase, and the equilibrium quantity of dollars traded will increase. B) The equilibrium exchange rate will increase, and the equilibrium quantity of dollars traded cannot be determined. C) The equilibrium exchange rate cannot be determined, and the equilibrium quantity of dollars traded will increase. D) The equilibrium exchange rate will decrease, and the equilibrium quantity of dollars traded cannot be determined.
Assuming Vice President Smith has to sacrifice more than his assistant in order to engage in full-time typing, we would say that his assistant has a(n) ________ advantage in typing versus Mr. Smith
A) absolute B) comparative C) pecuniary D) overwhelming
Following is a firm's expansion path. The price of capital is $5 per unit; the price of labor is $2 per unit. 
When output is 20 units, what is long-run average cost?
A. $3.50 B. $2 C. $4.50 D. $4 E. none of the above