Refer to Figure 2.1. What is the opportunity cost of increasing production of manufactured products from 500 tons to 600 tons per year?
A) 200 tons of agricultural products per year B) 400 tons of agricultural products per year
C) 500 tons of agricultural products per year D) 600 tons of agricultural products per year
A
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From 2007 to 2009 our current account deficit
A. has been cut in half. B. stayed about the same. C. almost doubled. D. more than tripled.
In response to an unanticipated easing of monetary policy, the Fed funds rate ________ at first, then ________ after 6 to 12 months
A) rises; returns most of the way to its original value B) falls; returns most of the way to its original value C) remains roughly unchanged; rises significantly D) remains roughly unchanged; falls significantly
In this graph, what concept could W 1 be used to demonstrate?
a. Inflationary markets often cause unemployment.
b. Establishing a minimum wage may lead to unemployment.
c. Unemployment can be resolved simply by increasing the labor supply.
d. The ideal wage maximizes the quantity of labor demanded.
Suppose there was a debate regarding how to spend $1 billion in newly found revenues in the budget. Suppose the centrist Democrat suggests an increase to infrastructure spending. Suppose the centrist Republican suggests an increase in cyber-defense spending. The Democrat says that, on average, infrastructure spending does the most good, so more is better. The Republican is arguing that the extra cyber-security purchased by the extra spending will increase well-being the most. What is going on here?
A. Both are employing marginal analysis, just from different perspectives. B. Only the Republican is using marginal analysis. C. Neither are using marginal analysis. D. Only the Democrat is using marginal analysis.