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. 2 computers
B. ½ computer
C. ¼ computer
D. 4 computers
Answer: C
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The Lorenz curves in the above figure imply that
A) income is distributed more unequally than wealth. B) wealth is distributed more unequally than income. C) both wealth and income are distributed equally. D) both wealth and income are distributed at the same level of inequality.
Refer to Figure 16-6. With this pricing scheme - a competitive price for the classes and a one-time membership fee - what amount of producer surplus will Sensei earn?
A) the area A + B + C + D + E + F + G + H B) the area E + F. C) the area H + G + F. D) the area A + B + C + D + E.
Since the 1930s, overall tariff rates in the United States have
A) increased. B) decreased. C) remained unchanged. D) become very unstable, changing week to week.
Because of automatic stabilizers, disposable income varies proportionately less than real GDP during periods of economic fluctuations
a. True b. False Indicate whether the statement is true or false