Assume a society can produce either olives or grapes. If the marginal rate of transformation of bushels of olives into bushels of grapes is 0.2, then the opportunity cost of olives is
A. the 5 bushels of grapes that must be forgone.
B. the additional 0.2 gallons of olives that can be produced.
C. the 5 bushels of olives that must be forgone.
D. the 0.2 bushels of olives that must be forgone.
Answer: A
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A) appreciation; 4 B) appreciation; 2 C) depreciation; 2 D) depreciation; 4
Industries that are truly critical to the national defense should be protected from foreign competition if that is the only way to ensure their existence
a. True b. False Indicate whether the statement is true or false
From 1970 to 2006, data representing average real income for U.S. households indicates that the rich have ________ and the poor have ________
A) gotten richer; gotten poorer B) gotten richer; also gotten richer C) gotten richer; gotten neither richer nor poorer D) gotten poorer; also gotten poorer
Every allocation of goods in a one good world is efficient because:
a. MRSs are equalized. b. there is enough to go around for everyone. c. no one can be made better off without making someone else worse off. d. it doesn't matter to whom an extra unit of the good is given.