Lu Thier is an accomplished violin and viola maker. He can make either 6 violins or 6 violas each year, or a combination such as 3 violins and 3 violas. Which statement below is true?
A) The opportunity cost of producing 1 violin is 1 viola.
B) The opportunity cost of producing 1 violin is 3 violas.
C) The opportunity cost of producing 1 violin is 6 violas.
D) The opportunity cost of producing 1 violin is 9 violas.
A
You might also like to view...
Inventories refer to
A) goods that have been planned but not yet produced. B) goods that have been produced and sold in the same year. C) goods which have been presold before they are produced. D) goods that have been produced but not yet sold.
If the dollar appreciates:
a. imports to the United States become more expensive for foreigners b. exports from the United States become more expensive for foreigners c. imports become more expensive for U.S. citizens. d. exports from the United States become cheaper e. the dollar will exchange for fewer units of a foreign currency
If a bottle of soda and bottled juice are substitutes, when the price of soda rises
A) demand for bottled juice rises. B) demand for bottled juice falls. C) quantity of bottled juice demanded falls. D) quantity of bottled juice demanded rises.
Without an accepted medium of exchange
A. people would have to rely on gold or silver in order to exchange goods and services. B. there would be no trade. C. prices are very difficult to determine. D. goods and services would be exchanged by barter.