Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true? The opportunity cost of a truck in Country A is:
A. 30 cars.
B. 6 trucks.
C. 5 cars.
D. 3 cars.
C. 5 cars.
You might also like to view...
Output in the long run is determined by which of the two following factors when an economy operates at full employment?
A) capital and supply B) capital and labor C) the "real" GDP and purchases D) imports and exports
Whenever a buyer and a seller agree to trade, both must believe they will be made better off
A) whether the buyer and seller live in the same city or different countries. B) only if the buyer and seller live in countries with market economies. C) unless one party is richer than the other. D) unless the buyer resides in a different country than the seller. International trade may make the buyer or seller worse off.
If a firm shuts down in the short run, it will
a. incur losses equal to its fixed costs b. produce at the output level where MC = MR c. reduce its losses to zero d. do this because P > AVC e. have total revenue greater than total fixed costs
It is possible to charge a price for a pure public good
a. True b. False Indicate whether the statement is true or false