Suppose Jon Stewart of the "Daily Show" makes an annual income of $1,000,000. If he quit his television job and went into producing he could make $400,000 per year. Jon Stewart's opportunity cost as a producer is
A) $1,400,000.
B) 1,000,000.
C) $400,000.
D) $600,000.
Answer: B
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A nation's trade deficit will tend to expand when
a. its economy is expanding. b. its economy is shrinking. c. its investment environment is less attractive to foreigners. d. both b and c above are true.
Other things constant, an increase in the price level will _____
Fill in the blank(s) with the appropriate word(s).
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