An economy has two workers, Paula and Ricardo. Everyday they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Paula to produce one shirt?
A. ½ computer
B. 4 computers
C. 2 computers
D. ¼ computer
Answer: D
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Referring to Figure 19.2, the effect of an increase in Japanese interest rates is represented by a movement from point
A) d to c. B) b to a. C) c to d. D) d to a.
In the short run, ________
A) cost push shocks can cause firms to raise prices B) workers pushing for higher wages may lead to increases in inflation C) the aggregate supply curve may shift to the left with increases in expected inflation D) all of the above E) none of the above
The slope of a steep upward-sloping line is a smaller value than the slope of a nearly flat upward-sloping line
a. True b. False
Over three-fourths of the world's population lives in households that have an average income of less than ________ per year.
A. $4,000 B. $10,000 C. $2,000 D. $1,000