An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Rich to produce one radio?
A. 4 TVs
B. 1/3 TV
C. 1/6 TV
D. 1/12 TV
Answer: B
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A leftward shift of a supply curve represents a decrease in supply
a. True b. False
When a business expands production and increases sales, what generally happens to revenue?
A. It depends on whether the firm has increasing or diminishing marginal revenue. B. Revenue falls because costs also rise. C. Revenue rises because the business is selling more output. D. Revenue is unaffected by the level of production or the number of sales.
To determine the optimal method of production for a good or service, a perfectly competitive firm needs to know all of the following except
A. the prices charged by its rivals. B. the prices of inputs. C. the technologies of production that are available to the firm. D. the market price of output.
If country A is importing good x from country B where x is produced along a perfectly inelastic supply curve, then country B will suffer the entire deadweight loss from any tariff imposed on imports to country A.
Answer the following statement true (T) or false (F)