Referring to Figure 1.5, the opportunity cost of producing the third unit of pizza is 
A. one unit of soda.
B. six units of soda.
C. three units of soda.
Answer: C
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According to economic theory, the democratic political processes tend to produce
A) unstable aggregate demand policies with a bias toward expansion. B) unstable aggregate demand policies with a bias toward contraction. C) stable aggregate demand policies, but only if economists are elected to office. D) stable aggregate demand policies that are in the best interests of the nation as a whole. E) economic policies that harm everybody.
The opportunity cost of going to college is
a. the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses. b. the value of the best opportunity a student gives up to attend college. c. zero for students who are fortunate enough to have all of their college expenses paid by someone else. d. zero, since a college education will allow a student to earn a larger income after graduation.
Which is the most accurate statement?
A. Workfare has been a great success in moving millions of people off the welfare rolls into minimum wage jobs. B. Most people on welfare are now limited to receiving benefits for no more than 5 years during their entire adult lives. C. The Personal Responsibility and Work Opportunity Act of 1996 provides jobs or training for every adult who desires to leave welfare. D. Until the passage of welfare legislation in 1996, the welfare rolls had been rising for the previous 6 years.
You are the manager of a Mom and Pop store that can buy milk from a supplier at $2.00 per gallon. If you believe the elasticity of demand for milk by customers at your store is ?3, then your profit-maximizing price is:
A. $3.00. B. $2.75. C. $4.50. D. $1.33.