A baker can produce two products: cupcakes and pies. The table below is the baker's production possibilities schedule:Production Possibilities ScheduleProductABCDEFCupcakes01220365681Pies1086420In moving from combination F to E, the opportunity cost of an additional 2 pies is
A. 2 cupcakes.
B. 20 cupcakes.
C. 56 cupcakes.
D. 25 cupcakes.
Answer: D
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The difference between price and average total cost is
A) total costs. B) marginal costs. C) average profit. D) an irrelevant quantity.
All of the following contribute to income inequality EXCEPT
A) differences in education and training. B) differences in job tastes. C) differences in talent. D) government transfer programs.
Long-term solutions to communitywide poverty must involve:
A. ways to expand the range opportunities available to the population. B. increasing the value of the currency. C. ways to reduce taxes collected by local governments. D. All of these are true.
Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 2. At bundle J, if Mitchell increases consumption of Y by 1 unit, how many units of X must he give up in order to satisfy his budget constraint?
A. 2 B. 1 C. 4 D. ½