In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of X is
A) 4 units of Y per unit of X.
B) 2 units of Y per unit of X.
C) 3/2 units of Y per unit of X.
D) 1 unit of Y per unit of X.
C
You might also like to view...
Refer to Figure 9.2. A movement from point a to point c could be caused by a(n)
A) increase in government spending. B) decrease in the price of oil. C) increase in taxes. D) increase in short-run aggregate supply.
When each country specializes in producing the good for which it has a comparative advantage:
A. both countries may benefit. B. both countries always enjoy equal gains from trade. C. the country that is bigger will gain more surplus. D. the country with the weaker economy will gain more surplus.
The function of economic institutions is to:
a. determine the profit margin of producers. b. determine how much an economy benefits from trade. c. define the environment in which we can trade. d. define the terms of trade between nations.
_____ are accounts at the U.S. commercial banks that combine an interest-bearing savings account with a noninterest bearing checking account
a. Automatic transfer system accounts b. Negotiable orders of withdrawal c. Eurodollar deposits d. Certificates of deposit e. Credit union share draft accounts