If Helen gives up the opportunity to bake 40 cakes for each room she paints and Josh can paint one room in the time it takes him to bake 60 cakes, which of the following is true?
a. The opportunity cost of painting is higher for Helen.
b. The opportunity cost of baking cakes is lower for Josh.
c. The opportunity cost of painting one room is 1/40 of a cake for Helen.
d. The opportunity cost of baking one cake is 60 rooms painted for Josh.
e. The opportunity cost of cakes cannot be computed.
B
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Refer to the following graphs to answer the question below.
In which graph would the indicated shifts cause equilibrium quantity to definitely rise, but the effect on price is indeterminate?
A. graph (1) B. graph (2) C. graph (3) D. graph (4)
Which of the following statements is false?
A) Between 1980 and 2006, the index of openness has risen for most countries. B) Since 1950, international trade has been growing faster than the growth of world output. C) A country cannot be a leading world exporter without a high index of openness. D) Two of the above are true.
Which of the following is least likely to limit the ability of a firm to minimize production costs?
A) Resistance by labor. B) The fact that the firm is a nonprofit organization. C) An increase in the amount of competition faced by the firm. D) Legislated input combinations for firms in particular industries, e.g, health care.
What would happen in the market for prescription drugs if people begin to view over-the-counter remedies as a good substitute for prescription medications?
A) Prescription medications will become an inferior good. B) There is an upward movement along the demand curve for prescription medications. C) There is a downward movement along the demand curve for prescription medications. D) The demand for prescription medications will decrease.