An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Rich to produce one TV?
A. 1/3 radio
B. 12 radios
C. 3 radios
D. 1/5 radio
Answer: C
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Refer to Figure 4-3. What area represents the deadweight loss at P2?
A) G + H B) C + E + H C) C + E D) B + C
If average product is decreasing, then marginal product must be negative
Indicate whether the statement is true or false
The difference between zero accounting profit and zero economic profit is that
A. an economic profit of zero indicates a fair rate of return because it includes the opportunity cost of a firm’s capital. B. an economic profit of zero indicates an unacceptable rate of return because it does not include the opportunity cost of a firm’s capital. C. an economic profit of zero indicates more than a fair rate of return because it includes opportunity cost and explicit cost. D. an accounting profit of zero indicates a fair rate of return because it includes the opportunity cost of a firm’s capital.
In macroeconomics, we talk about:
A. consumption at a regionallevel. B. production of mostgoods in the economy. C. prices in one specific market. D. investment on a national level.