The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a dozen eggs?
A) 1 2/3 gallons of milk
B) 3/5 of a gallon of milk
C) $2.50
D) $1.50
Answer: B
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Whether studying the output of the U.S. economy or how many classes a student will take, a unifying concept is that:
A. both wants and resources are unlimited, so trade-offs are unnecessary. B. wants are limited and resources are unlimited, so trade-offs are unnecessary. C. wants are unlimited and resources are scarce, so trade-offs have to be made. D. wants are limited and resources are unlimited, so trade-offs have to be made.
Which of the following statements explains the relationship between supply, demand, price, and quantity in this graph?
a. The demand for land does not change with price, but an increase in supply will lower
the price, which can lead to a decrease in the quantity made available by owners.
b. The quantity of land supplied remains the same at any price, but an increase in
demand can increase the price owners receive and result in an increase in the overall
supply.
c. The price of land is determined by the quantity of acres supplied, and the higher the
acreage, the higher the demand and therefore the price paid to land owners.
d. The supply of land does not change with price, but an increase in demand will
increase the price, which can lead to an increase in the quantity made available by
owners.
The Maastricht Treaty, signed in 1992, initiated:
A) European political integration. B) an economic and monetary union that featured a common currency. C) an alliance of nations who opposed environmental harms from trade. D) an agreement for free flow of labor and other resources across borders.
The production function shifts upward as the capital stock increases.
Answer the following statement true (T) or false (F)