The above figure shows the production possibility frontier for a country. Suppose the country is producing at point A. What is the opportunity cost of increasing the production of rice to 12 tons?
A) 6 thousand bottles of wine
B) 9 thousand bottles of wine
C) 15 thousand bottles of wine
D) 12 tons of rice
E) Nothing, it is a free lunch.
A
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Explain what are the factors that shift the AA Schedule?
What will be an ideal response?
If both the supply and demand for computer games increase, then the equilibrium price of the games: a. is indeterminate and the equilibrium quantity rises
b. is indeterminate and the equilibrium quantity falls. c. falls and the equilibrium quantity also falls. d. falls and the change in equilibrium quantity is indeterminate.
The money market is distinguished from the capital market, because
a. The money market is where foreign exchange is traded, and the capital market is where long-term and short-term funds are borrowed and lent. b. The money market is where foreign exchange is traded, and the capital market is where long-term funds (i.e., maturities more than one year) are borrowed and lent. c. The money market is where foreign exchange is traded, and the capital market is where short-term funds (i.e., maturities equal to or less than one year) are borrowed and lent. d. The money market is where short-term funds (i.e., maturities equal to or less than one year) are borrowed and lent, and the capital market is where long-term funds (i.e., maturities greater than one year) are borrowed and lent. e. None of the above.
In a market economy, economic activity is guided by
a. the government. b. central planners. c. large businesses. d. prices and self-interest.