If Bert has budget constraint A in the graph shown, what is his opportunity cost of three gallons of milk?
This graph shows three different budget constraints: A, B, and C.
A. Twelve cases of soda
B. Eight cases of soda
C. Four cases of soda
D. It is impossible to say without knowing Bert's income.
C. Four cases of soda
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Critics of unconventional monetary policies argue that such operations take the Fed beyond its proper powers, may politicize it, and can unleash future inflation.
Answer the following statement true (T) or false (F)
Suppose the economy is just recovering from a recession and all signs now point to robust growth. How might this transition from recovery to expansion be reflected in the monetary policy curve?
What will be an ideal response?
The principle of comparative advantage essentially states that
A) there are some goods for which the opportunity costs of production are the same regardless of who produces them. B) some goods have high opportunity costs and low absolute costs. C) specialization can reduce output rather than increase it. D) total output of an economic system is greatest when each good is produced by those who have the lowest opportunity cost of producing the good.
An exterior painting company is contemplating buying a bigger truck and ladder. This is a
a. bad decision because average costs will be higher b. good decision because average costs will be lower c. long-run decision d. short-run decision e. bad decision because more fuel will be needed