The table below shows the number of labor hours required to produce one gallon of wine and one pound of cheese in the United States and France. The opportunity cost of producing cheese in the United States is Labor hours to make:In the United StatesIn France1 gallon of wine4.001.001 pound of cheese1.002.00
A. 0.5 gallon of wine.
B. four gallons of wine.
C. one gallon of wine.
D. 0.25 gallon of wine.
Answer: D
You might also like to view...
How would the elimination of a sales tax affect the market for a product that had been subject to the tax?
A) The equilibrium price for the product would fall by less than the amount of the tax. B) The reduction in government revenue from the tax would be made up by an increase in property taxes. C) The supply of the product would become more elastic. D) The demand for the product would rise and the equilibrium price would fall by the amount of the tax.
If the educational attainment of a nation's population increases, the economy's production possibilities curve shifts inward
a. True b. False Indicate whether the statement is true or false
For an individual who has special talent as a singer, a large proportion of her salary can be considered
A) a fixed cost. B) economic rent. C) a payment below opportunity cost. D) opportunity cost.
Generally speaking, firms _____ of their capital assets
a. prefer straight-line depreciation b. prefer accelerated depreciation c. are indifferent between straight-line and accelerated depreciation d. prefer not to depreciate