Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Scott's opportunity cost of producing 1 taco is
A) 1/2 of a pizza.
B) 1 pizza.
C) 2 pizzas.
D) 20 pizzas.
E) 2 tacos.
A
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Some economists believe that the behavior of unemployment in Europe and in the United States during the 1980s and 1990s
A) was the same because both markets experienced adverse labor market shocks. B) differed because the real wage in Europe was rigid. C) was the same because the real wage in Europe and the United States moved together. D) differed because the United States experienced adverse labor market shocks but Europe did not.
Assume the economy is at full employment. Which of the following would you expect if oil prices suddenly decreased?
a. A recession b. A decrease in employment below its full-employment level c. An economic contraction d. A technological breakthrough e. An increase in employment above its full-employment level
A time series data is also called a longitudinal data set.
Answer the following statement true (T) or false (F)
Suppose that lenders want to receive a real rate of interest of 5%, and that they expect inflation to remain steady at 2% in the coming years. Based on this, lenders should charge a nominal interest rate of
A. 7%. B. 3%. C. 5%. D. 2%.