Opportunity cost is represented on the production possibilities frontier by

The figure above gives your budget line for magazine and CDs per month. Given that your income equals $60 per month, what is your real income in terms of magazines?

A) 12 magazines B) 6 magazines C) 2 magazines D) $60/month

The following is an example of risk aversion

a. those applying for a well-paid job tend to be the most qualified b. more reckless drivers opt for cars with more safety devices c. the contractor with the lowest bid for a is the most qualified d. Initial Public Offerings (IPOs) seek investors when prospects look good