For each watch Switzerland produces, it gives up the opportunity to produce 50 pounds of cheese. Germany can produce one watch at a cost of 100 pounds of cheese. Which of the following is true?
a. The opportunity cost of producing watches is greater in Switzerland.
b. The opportunity cost of producing cheese is greater in Switzerland.
c. The opportunity cost of producing cheese is the same in both countries.
d. It is impossible to compare costs because the two countries use different technologies.
e. In the two countries combined, the cost of producing one watch is 150 pounds of cheese.
B
You might also like to view...
A firm will shut down in the short-run if
a. P>AVC
b. P
A country that shows a deficit in its financial account is a net creditor to the rest of the world
a. True b. False Indicate whether the statement is true or false
When European markets refused to allow U.S. beef to be imported because U.S. cows had been fed government-approved hormones, this was an example of
a. a tariff b. a quota c. free trade d. a nontariff barrier e. economic efficiency
Crowding out:
A. increases the multiplier effect, so that an increase in government spending raises income by more. B. increases the multiplier effect, so that an increase in government spending raises income by less. C. decreases the multiplier effect, so that an increase in government spending raises income by less. D. decreases the multiplier effect, so that an increase in government spending raises income by more.