In Table 3-2, from combination C, the opportunity cost of 2 more units of cotton would be
A. 4 units of corn.
B. 8 units of corn.
C. 14 units of corn.
D. 16 units of corn.
Answer: A
You might also like to view...
If the demand for labor ________, real wages rise and the amount of labor employed ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Assuming no change in the nominal exchange rate, how will a decrease in the price level in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will fall. B) The real exchange rate will be unaffected. C) The real exchange rate will rise. D) The impact on the real exchange rate cannot be predicted.
When total revenue reaches its peak (elasticity equals 1), marginal revenue reaches
A) 1. B) zero. C) -1. D) Cannot be determined from the information provided
Much of the nation's coal is extracted by strip mining. This process leaves a huge barren hole in the ground when complete, and the cost of replanting the trees is approximately $10 per ton of coal. Burning the coal for electricity causes air pollution. No one knows how much damage the air pollution causes, but we know that for another $10 per ton the power plant can be outfitted with a pollution
control device. What is one measure of the true social cost of coal fired electricity, in dollars per ton? a. Private marginal cost plus the $10 replanting charge. b. Private marginal cost plus the $10 emission control charge. c. Only the $20 of replanting and emission control charges, because the other costs are private, not social. d. Private marginal cost plus the $20 of replanting and emission control charges. e. In order to answer this question we need to know the dollar value of the pollution.