Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
A) 10 thousand hammers B) 8 thousand wrenches
C) 13 thousand hammers D) 0 wrenches
B
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During a particular year, nominal wages increased by 4 percent but real wages declined by 2 percent. This implies that the price level increased by 6 percent
a. True b. False Indicate whether the statement is true or false
Which of the following types of goods are rival in consumption?
a. private goods and club goods b. private goods and common resources c. public goods and club goods d. public goods and common resources
The substitution effect of wages states that a decreased wage rate
A. Will shift the labor supply curve rightward. B. Will lead to a movement up along the existing supply curve. C. Encourages people to consume less leisure. D. Encourages people to work less hours.
How does a weak financial sector intensify the problems created by volatile capital flows?
What will be an ideal response?