Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true? The opportunity cost of a truck in Country B is:
A. 4 trucks.
B. 1.5 cars
C. 12 cars.
D. 3 cars.
Answer: D
You might also like to view...
Which of the following groups of people will be considered as unemployed?
A) Workers who experienced a wage cut due to recession B) Housewives raising kids at home and not looking for jobs C) Employees working in public sector undertakings D) Agricultural workers who are unemployed and have been looking for jobs for the last four weeks
A firm's net worth is equal to the value of its
A) assets minus the value of its liabilities. B) liabilities minus the value of its assets. C) common stock minus the value of its outstanding bonds. D) outstanding bonds minus the value of its common stock.
When a shortage occurs in the market for a good, quantity
A. demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption. B. supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption. C. demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption. D. supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.
An increase in the U.S. price level will
a. increase the slope of the expenditure schedule. b. decrease the slope of the expenditure schedule. c. shift the expenditure schedule upward. d. shift the expenditure schedule downward.