Suppose the prices of a pair of jeans, a shirt, and a tie are $30, $20, and $10 respectively. Which of the following statements is true in this context?
A) The opportunity cost of buying a pair of jeans is 2 ties.
B) The opportunity cost of buying a tie is 3 pairs of jeans.
C) The opportunity cost of buying a tie is 2 shirts.
D) The opportunity cost of buying a shirt is 2 ties.
D
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Part of the spending on the Doyle Drive project in northern California came from the American Reinvestment and Recovery Act, which is an example of ________ aimed at increasing real GDP and employment
A) an automatic stabilizer B) a transfer payment C) discretionary fiscal policy D) contractionary fiscal policy
Why do some people think that the productivity slowdown since 1973 is just a return to normalcy after fast productivity growth during the previous 25 years?
A) Productivity growth of the previous 25 years was abnormally low. B) The Great Depression and World War II had prevented technological opportunities from being exploited. C) The United States is the only country to face the slowdown, due to poor regulatory decisions. D) The United States has allowed countries like Japan to steal its technological breakthroughs.