All opportunity costs are
a. Nonmonetary
b. Forgone monetary payments
c. Losses of time
d. Values of alternatives that must be given up
e. Related to educational opportunities
Answer: d. Values of alternatives that must be given up
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Betty and Wilma are the only two cashiers employed at a retail store. Each of them works the same 40 hours per week. By manually entering the price of each product purchased into the cash register, Betty can check out 20 customers and Wilma can check out 30 customers per hour. The store owner replaces the old cash registers with new ones that automatically scan product prices into the register. With the new cash registers, Betty and Wilma can each check out 60 customers per hour. Their average labor productivity as a team before the new cash registers were introduced was ________ customers per hour and ________ customers per hour after the new machines were installed.
A. 50; 60 B. 25; 60 C. 1,000; 2,400 D. 50; 120
According to the law of increasing opportunity costs,
A. Greater production means factor prices rise. B. Higher opportunity costs induce higher output per unit of input. C. Greater production leads to greater inefficiency. D. Greater production of one good requires increasingly larger sacrifices of other goods.
Strategic trade policy might work if
A) trade decisions are made simultaneously by two countries. B) trade decisions are made sequentially by two countries. C) trade decisions entail response by a trading partner. D) trade decisions are made in a random fashion.