An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Paula to produce one shirt?

A. 4 computers
B. ¼ computer
C. ½ computer
D. 2 computers


Answer: B

Economics

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If relative purchasing power between the United States and Argentina is 3.22 pesos per dollar, under which circumstances would we say that the dollar is "overvalued"?

A) if the actual exchange rate between the dollar and the Argentinean peso is 3 pesos per dollar B) if the actual exchange rate between the dollar and the Argentinean peso is 4 pesos per dollar C) if the actual exchange rate between the dollar and the Argentinean peso is 3.22 pesos per dollar D) if the actual exchange rate between the dollar and the Argentinean peso is 0.22 pesos per dollar

Economics

At any given time in the U.S., 16 percent of the population lacks health insurance.

A. True B. False C. Uncertain

Economics

If something is a medium of exchange, then it:

a. serves as a yardstick for measuring the value of other goods. b. is a means of holding wealth for the future. c. has an absolute value in gold. d. is widely accepted as payment for purchases.

Economics

Why must every nation answer the three fundamental economic questions?

A. because of differences in the distribution of resources B. because some nations have better production technology C. because some nations are wealthy and others are poor D. because of the problem of scarcity

Economics