Indonesia's opportunity cost of producing bananas is
A. 2.5 units of rice. This is higher than India's opportunity cost of producing bananas.
B. 2.5 units of rice. This is lower than India's opportunity cost of producing bananas.
C. 2/5 units of rice. This is higher than India's opportunity cost of producing bananas.
D. 2/5 units of rice. This is lower than India's opportunity cost of producing bananas.
Answer: A. 2.5 units of rice. This is higher than India's opportunity cost of producing bananas.
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Q: How many economists does it take to screw in a light bulb? A: None. If the light bulb really needed changing, market forces would have already caused it to happen. This joke represents the view of
A) classical economists. B) Keynesian economists. C) economists who conclude that money illusion is widespread. D) economists who conclude that wages and prices are inflexible.
When making a rational decision which requires the consideration of costs and benefits involved, the opportunity cost of a decision is often not taken into consideration when indeed it should be
a. True b. False Indicate whether the statement is true or false
When it's cheaper to produce two or more products in one firm than to produce them in separate firms, which of the following is said to exist?
a. Horizontal integration b. Economies of scale c. Decreasing returns to scale d. Economies of scope
How does the aggregate demand and aggregate supply model return to long-run equilibrium after an increase in spending growth?
A. The SRAS curve shifts up and to the left as inflation expectations adjust. B. The AD curve shifts back to the left as inflation expectations adjust. C. The AD curve shifts out to the right as inflation expectations adjust. D. The SRAS curve shifts down and to the left as inflation expectations adjust.