Suppose the prices of a pair of jeans, a shirt, and a tie are $30, $20, and $10 respectively. Which of the following statements is true in this context?
A) The opportunity cost of buying a pair of jeans is 2 ties.
B) The opportunity cost of buying a tie is 3 pairs of jeans.
C) The opportunity cost of buying a tie is 2 shirts.
D) The opportunity cost of buying a shirt is 2 ties.
D
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A contractionary monetary policy tends to ____ the United States dollar relative to foreign currencies, and to _____ our balance of trade.
A. raise; help B. raise; hurt C. lower; help D. lower; hurt
Generally, most of the world's industrial countries believe that central banks should be independent of their governments
a. True b. False Indicate whether the statement is true or false
The Fed conducts an open market sale of Treasury bills of $5 million. If the required reserve ratio is 0.20, what change in the money supply can be expected using the oversimplified money multiplier?
a. $25 million b. $5 million c. 0 d. ?$5 million e. ?$25 million
If a firm collects $90 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $105 in revenue when it sells 6 units, then one can infer the firm is a:
A. price taker. B. monopolist. C. profit maximizer. D. perfect competitor.