In the figure above, Joe is producing at point A. Joe's opportunity cost of producing one shirt is
A) 5/3 of a pair of pants per shirt.
B) 3/5 of a pair of pants per shirt.
C) 5 pairs of pants per shirt.
D) 2 pairs of pants per shirt.
D
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Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If 10,000 units of iced tea are sold
A) the deadweight loss is equal to economic surplus. B) producer surplus equals consumer surplus. C) marginal benefit is less than marginal cost. D) the marginal benefit of each of the 10,000 units of iced tea equals $3.
Society's economizing problem involves: (check all that apply)
a. devoting equal amounts of resources to goods and services such as health care, energy, and education b. devoting more resources to physical capital goods that deliver consumer goods and lead to economic growth and higher standards of living. c. making choices in the face of scarcity. d. scarce resources. e. opportunity cost.
Refer to the above figure. At real GDP of $3 trillion, actual investment equals
A. planned investment of $0.5 trillion. B. unanticipated inventory adjustments of $0.5 trillion. C. actual saving of $1 trillion. D. planned saving of $1 trillion.
Which of the following statements is correct?
A. Price elasticity of supply is constant along the supply curve. B. Price elasticity of supply is always a negative number. C. Supply is more elastic in the short run than in long run. D. Supply is more elastic in the long run than in short run.