The above figure shows the production possibility frontier for a country. Suppose the country is producing at point D. What would be the opportunity cost to move to point C?
A) 6 thousand bottles of wine
B) 15 thousand bottles of wine
C) 12 tons of rice
D) Nothing, it is a free lunch.
E) This movement is not possible without economic growth.
E
You might also like to view...
By issuing checks, debit cards, and credit cards, banks:
a. increase the transaction costs in the economy. b. decrease the transaction costs in the economy. c. increase the liquidity of assets in the economy. d. decrease the liquidity of assets in the economy.
Suppose Mr. Lee has total income of $120,000, has taxable income of $90,000, and pays $30,000 in taxes. Considering the information, what is Mr. Lee's effective tax rate?
A. 33.33 percent. B. 72 percent. C. 25 percent. D. 66.7 percent.
During a recession, tax revenues ________ while government transfer payments ________, thereby mitigating part of the adverse effects of a recession and stabilizing the economy.
A. fall; increase B. fall; decrease C. rise; increase D. rise; decrease
On average, people in low-income countries ________ than people in high-income countries
A) have a longer life expectancy B) are subject to a lower infant mortality rate C) are shorter D) are exposed to fewer severe diseases