The city of Austin can buy roads or light rail. If 10 miles of roads cost $1 million and 2 miles of light rail cost $10 million, what is the city's opportunity cost of 1000 miles of roads?
a. $100 million
b. 2 miles of light rail
c. 200 miles of light rail
d. $50 million
e. $1,000 million
a
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What are the three functions that banks perform as financial intermediaries?
What will be an ideal response?
The market price system provides a highly efficient mechanism for disseminating information about relative scarcities of goods, services, labor, and financial capital.
Select whether the statement is true or false. A. True B. False
Which of the following is least likely to be an example of peak/off-peak pricing?
a. breakfast cereals b. hotels c. wireless service d. electricity
Assume the market is in equilibrium in the graph shown at demand D and supply S1. If the supply curve shifts to S2, and a new equilibrium is reached, which of the following is true?
A. Consumer surplus decreases, but producer surplus increases. B. Both consumer and producer surplus decrease. C. Both consumer and producer surplus increase. D. Consumer surplus increases, but producer surplus decreases.