Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 chair is
a. 1/6 table for Ken and 1/3 table for Traci.
b. 1/6 table for Ken and 3 tables for Traci.
c. 6 tables for Ken and 1/3 table for Traci.
d. 6 tables for Ken and 3 tables for Traci.
a
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If positive externalities are present in a free market, ________ at any output level
A) the marginal cost of production equals the average cost of production B) the marginal social cost of production exceeds the marginal private cost C) the marginal private benefit from production equals marginal social benefit D) the marginal social benefit of production exceeds marginal private benefit
Which of the following policy measures created an Office of Credit Ratings at the SEC with its own staff and the authority to fine credit-rating agencies and to deregister an agency if it produces bad ratings?
A) the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 B) Sarbanes-Oxley Act of 2002 C) Global Legal Settlement of 2002 D) Gramm-Leach-Bliley Act of 1999 E) Riegle-Neal Act of 1994
Private investment as a share of the economy tends to be higher in countries
a. with low levels of economic freedom. b. with high levels of economic freedom. c. with economic freedom ratings near zero. d. that have experienced a sharp reduction in economic freedom during the most recent decade.
Many detrimental externalities occur because
A. persons do not pay the full social cost of using a resource. B. persons do not pay the full private cost of using a resource. C. companies do not pay the market price for natural resources. D. companies pay more than the full social cost of using a resource.