To find the opportunity cost of producing one more unit of any product while on the production possibilities frontier requires
A) subtracting the change in the product whose production increased from the change in the product whose production decreased.
B) dividing the amount of the product forgone by the amount of the product gained.
C) setting the amounts of the two products equal to each other.
D) setting the change in one product equal to the change in the other product.
E) None of these describes how to find opportunity cost.
B
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If a union successfully negotiates for higher wages and benefits for airline pilots, what impact would this have on supply and demand in the market for passenger airline travel, assuming no other changes take place in the market?
What will be an ideal response?
The United States is less dependent on trade than most other countries because
A) the United States is a relatively large country with diverse resources. B) the United States is a "Superpower." C) the military power of the United States makes it less dependent on anything. D) the United States invests in many other countries. E) many countries invest in the United States.