An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Rich to produce one radio?
A. 1/3 TV
B. 1/6 TV
C. 1/12 TV
D. 4 TVs
Answer: A
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Refer to Table 20-10. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2011 is the base year, then what is the CPI for 2016?
A) 14.3 B) 87.5 C) 114.3 D) 160
In autarky equilibrium,
A) production equals consumption. B) exports equal imports. C) there is no international trade. D) All of the above.
In deriving the aggregate demand curve a ________ inflation rate leads the central bank to ________ real interest rates, thereby ________ the level of equilibrium aggregate output
A) higher; raise; lowering B) lower; raise; lowering C) higher; lower; lowering D) higher; lower; raising
Government spending is a leakage out of the circular flow of income and spending
a. True b. False Indicate whether the statement is true or false