Suppose that opportunity costs are constant and that Gorge can either bake a maximum of six pies or three cakes in a day. Brandi can either produce a maximum of eight pies or two cakes in a day. Gorge's opportunity cost to produce one cake is
A. one-half pie.
B. four pies.
C. six pies.
D. two pies.
Answer: D
You might also like to view...
Is a firm economically inefficient if it can cut its costs by producing less? Why or why not?
What will be an ideal response?
If the relationship between the monetary aggregate and the goal variable is weak, then
A) monetary aggregate targeting is superior to exchange-rate targeting. B) monetary aggregate targeting is superior to inflation targeting. C) inflation targeting is superior to exchange-rate targeting. D) monetary aggregate targeting will not work.
In the collective bargaining process
a. supply and demand analysis is used to determine the wage. b. the contract can legally cover only the wage or salary determined. c. there is often heated discussion with threats of strikes and counterthreats of lockout. d. the negotiation period is limited to thirty days.
What will decrease LRAS?
a. a natural disaster that destroys much of the infrastructure in the country b. an increase in the labor force c. an increase in the nation's energy reserves d. all