Refer to the accompanying figure. At point D, the opportunity cost of making milk is:
A. high because productive resources that are better-suited to making movies are being used to make milk.
B. high because productive resources that are better-suited to making movies are not being used to make milk.
C. low because the economy is specializing in making milk.
D. high because the economy is not operating efficiently.
Answer: A
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A) gold certificates + other Fed liabilities. B) bank reserves + other Fed liabilities. C) Federal Reserve notes. D) cash + loans + U.S. Treasury deposits.
A tax ________ is more likely to cause a permanent increase in investment and worker productivity in an economy with a ________
A) increase; small government budget deficit B) decrease; large government budget deficit C) decrease; high inflation rate D) increase; large government budget deficit
U.s. gnp
a. includes production of foreigners working in the U.S. and production of U.S. citizens working in foreign countries. b. includes production of foreigners working in the U.S. but excludes production of U.S. citizens working in foreign countries. c. excludes production of foreigners working in the U.S. but includes production by U.S. citizens working in foreign countries. d. excludes production of foreigners working in the U.S. and production by U.S. citizens working in foreign countries.