Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The opportunity cost of one tomato in Country A is:
A. 100 bananas.
B. 20 bananas.
C. 5 bananas.
D. 4 bananas.
C. 5 bananas.
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A market system works very well in solving some basic problems of the economy but it fails in some cases. Provide examples.
What will be an ideal response?
Policies that mandate the installation of specific pollution control devices are called
A) incentive policies. B) benefit policies. C) welfare policies. D) command-and-control policies.
The additional revenue obtained by selling the output produced by one more unit of a resource is its
A. marginal physical product. B. marginal revenue product. C. final demand. D. average revenue product.
?Kites /hourSnowboards /hourJesse81April123
Based on the data in Table 18.1:
A. Jesse should specialize in painting kites and trade for snowboards. B. Jesse should specialize in painting snowboards and trade for kites. C. April should specialize in both goods. D. Jesse should specialize in both goods.