Refer to Scenario 4 . What is the opportunity cost of building one more prison?
What will be an ideal response?
The opportunity cost of building one more prison is two schools. This is gleaned from the fact that the opportunity cost of 5 prisons is 10 schools or 5P = 10S. Solving for P leaves you with 2S or two schools
Economics
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The classical labor supply function is shown as
a. Ns = g(P/W). b. Ns = g(W/P). c. Ns = t(W/Pe). d. Ns = t(Pe/W).
Economics
Based on Scenario 6.1 above, if a tariff of 20 percent is placed on imports of dining room tables, the effective rate of protection is
A) 20 percent. B) 25 percent. C) 30 percent. D) 40 percent.
Economics