Referring to Situation #1 suppose that you decide that you have to fire the first and the third executive without hiring any replacements
What would be the opportunity cost of the second executive's work? Explain why your answer is not the same as in the question above.
The opportunity cost of second executive's work is $800,000 . The reason is that since each executive can perform any work that they other can then it makes sense to change the second executive's job so that he is now doing the most highly valued work – that with the $1,000,000 value. That leaves the $800,000 job undone which means that becomes the opportunity cost of the second executive's work.
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What prompted the EU countries to seek closer coordination of monetary policies and greater exchange rate stability in the late 1960s?
What will be an ideal response?
Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50, and the price of each input is $9. If productivity increased such that 400 units are now produced with the quantity of inputs still equal to 50, then per-unit production costs would:
A. increase and aggregate demand would decrease. B. decrease and aggregate demand would increase. C. decrease and aggregate supply would increase. D. decrease and aggregate supply would decrease.