Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, in the production range of 21 to 23 brushes the opportunity cost of producing one more comb in terms of brushes is
A. 4.
B. 1/21.
C. 1/2.
D. 21/23.
Answer: C
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Which of the following most completely describes the workings of the aggregate expenditures model?
a. If aggregate expenditures are less than aggregate output, then there is unplanned inventory accumulation, and real GDP will decrease. b. If aggregate expenditures are greater than aggregate output, then there is unplanned inventory depletion, and real GDP will increase. c. Aggregate output generates an equal amount of aggregate spending. d. Both a. and b. above are correct.
In order for the existing workforce to be more productive, there needs to be
A. An increase in human capital. B. A decrease in economic growth. C. An increase in population. D. A redistribution of income within the nation.
Externalities always consist of benefits that are not confined to the person or organization that decides how much of a good to produce or consume.
Answer the following statement true (T) or false (F)
A market situation in which a large number of firms produce similar but not identical products is called
A) pure monopoly. B) monopolistically competitive. C) oligopolistic behavior. D) perfectly competitive.