Assume Cooky and Laundry are roommates. Cooky can cook 8 meals (= M) or do 2 loads of laundry (= L) in a given amount of time. During the same time period, Laundry can cook 6 meals or 4 loads of laundry. Which of the following opportunity cost (OC) values is true?
a) Cooky's OC of 1L = 4M.
b) Laundry's OC of 1L = 1.5M.
c) Cooky's OC of 1M = 1/4L.
d) Laundry's OC of 1M = 2/3L.
e) All of the above.
e) All of the above.
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U.S. macroeconomic data show that a stable Phillips curve existed during the 1960s
a. True b. False Indicate whether the statement is true or false
Which of the following led to the collapse of the Phillips Curve?
a. Rightward shift in the demand for labor curve b. Leftward shift of the Phillips curve c. Leftward shift of the aggregate supply curve d. Rightward shift of the aggregate demand curve.
Which of the following would not fall under the description of unconventional monetary policy by the Federal Reserve?
A. Opening lending facilities to noncommercial banks B. Lowering the reserve requirement for banks C. Accepting lower quality assets as collateral for loans D. Directly purchasing short-term bonds from money market mutual funds
An open market sale of bonds by the Federal Reserve will lead to an increase of reserves in banks.
Answer the following statement true (T) or false (F)