Refer to Table 2-20. What is Japan's opportunity cost of producing one pound of rice?
A) 0.04 units of a wristwatch B) 4 wristwatches
C) 25 wristwatches D) 40 wristwatches
A
You might also like to view...
Economic growth is equal to:
a. total factor productivity plus amounts of resources. b. growth in total factor productivity plus growth in amounts of resources. c. total factor productivity minus marginal factor productivity. d. real GDP plus national output. e. GNP plus GDP.
Firms in a monopolistically competitive industry maximize profits by
a. equating total revenue and total cost b. treating price as given and maximizing output c. minimizing costs d. producing the level of output at which MR = MC e. producing the level of output at which TR = TC
In the price-taker model, what impact does the individual firm have on the price of its product?
a. The firm must accept the price determined in the market if it is going to sell its product. b. The firm may raise or lower its price to a small extent, but sales revenues will tend to be the same regardless of price. c. The firm may raise its price and, thereby, increase its revenues. d. The firm may raise or lower its price to a considerable extent, but sales revenues will tend to be the same regardless of price.
Which of the statements best describes why the aggregate demand curve is downward sloping?
a. As the aggregate price level increases, consumer expectations about the future change. b. As the aggregate price level decreases, the stock of existing physical capital increases. c. An increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. e. As a good's price increases, holding all else constant, the good's quantity demanded decreases.