The following table shows the units of output a worker can produce per month in country A and country B.
Country
Food
Electronics
Country A
20
5
Country B
12
4
The opportunity cost of a unit of electronics in Country B is
A. 3 units of food.
B. 2 units of food.
C. 5 units of food.
D. none of these.
Answer: A
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The Red Jacket Mountain View Inn in New Hampshire charges $159 per room in the winter ski season and $114 during the summer months. The number of rooms and operating costs are constant year round. These prices indicate
a. rightward shifts in the demand curve in the summer. b. a rightward shift in demand in the winter. c. leftward shifts in the supply curve in the summer. d. a leftward shift in demand in the winter.
Which of the following is true of government activities under a system of representative democracy?
a. When voters pay in proportion to benefits received, all voters will gain if the government activity is productive. b. If a majority opposes an activity, it must be counterproductive. c. When voters must pay in proportion to benefits received for an activity undertaken by the government, the activity will most likely be rejected by the majority of voters. d. Government activities must be productive in order to be eligible for vote.