Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must
A) take the inverse.
B) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good.
C) multiply by the total amount produced of the second good.
D) divide by the total amount produced of the second good.
E) None of the answers is correct.
A
You might also like to view...
Suppose some workers are capable and others are extraordinary. Firms are willing to pay capable workers a salary of $12,000 and extraordinary workers a salary of $15,000
Workers know if they are capable or extraordinary but firms do not (that is, ability is private information). It would cost a capable person $6,000 to earn a college degree but it would cost an extraordinary person just $2,000 to earn a college degree since they can finish their education much faster. Show that in equilibrium in this labor market (i) extraordinary people go to college but capable people do not, and (ii) firms pay college graduates $15,000 and high school graduates $12,000 .
Changes in relative prices occur when
A) all prices move together. B) all exchange rates move together. C) product prices change at different rates. D) exchange rate appreciation is greater than price appreciation.
Hyperinflations are usually made possible by
A. multinational corporations. B. highly mobile international capital. C. governments printing money rapidly. D. higher and higher tax rates.
Refer to the graph above. Which of the following changes will shift AD 1 to AD 2?
A cut in personal and business taxes A shrinkage in the value of stocks and other financial assets An increase in the value of the dollar relative to other currencies An increase in real interest rates