If Helen gives up the opportunity to bake 40 cakes for each room she paints and Josh can paint one room in the time it takes him to bake 60 cakes, which of the following is true?
a. The opportunity cost of painting is higher for Helen.
b. The opportunity cost of baking cakes is lower for Josh.
c. The opportunity cost of painting one room is 1/40 of a cake for Helen.
d. The opportunity cost of baking one cake is 60 rooms painted for Josh.
e. The opportunity cost of cakes cannot be computed.
B
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Which of the following is a major reason for offshoring?
a. The gradual diminishing of global technological advances. b. Increased global demand for services. c. Reductions in international trade barriers. d. All of the above are major reasons for offshoring.
A point on a nation's production possibilities curve represents
A. The full employment of resources to achieve a particular combination of goods and services. B. Combinations of production that are unattainable, given current technology and resources. C. An undesirable combination of goods and services. D. Levels of production that will cause both unemployment and inflation.