An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Paula to produce one computer?
A. 1 shirt
B. ¼ shirt
C. ½ shirt
D. 4 shirts
Answer: D
You might also like to view...
By the standard of low-grade bonds, interest rates were ________ and monetary policy was ________ during the Great Depression
A) low; tight B) low; easy C) high; tight D) high; easy
Budget projections for 2014-2020 indicate both higher levels of government spending and large budget deficits. Non-Keynesian economists argue that this will lead to
a. lower taxes, which will reduce aggregate supply and retard long-term growth. b. growth rates above the historic average for the decade. c. an increase in aggregate demand and real output. d. higher interest rates, higher taxes, and sluggish future growth.
If R represents the reserve ratio for all banks in the economy, then the money multiplier is
a. 1/(1-R). b. 1/R. c. 1/(1+R). d. (1+R)/R.
In the ultimatum game, when the allocator and the recipient care about fairness, how is the distribution of $20.00 affected?
a. Allocators receive everything, and recipients receive nothing. b. Recipients usually reject offers of less than a 10 percent share. c. Allocators usually offer recipients a very small share. d. Allocators and recipients always end up sharing the $20.00 equally.