On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced
Between these points, what is the opportunity cost of producing a pound of apples?
A) 2 pounds of bananas
B) 5/12 of a pound of bananas
C) 0.5 of a pound of bananas
D) 2 pounds of apples
E) 100 pounds of bananas
C
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If the average annual growth rate in real GDP for a nation during the last decade was 4 percent per year and the average annual population growth rate was 3 percent per year during the same period, then the average annual growth rate of per capita GDP was
A) 1.00 percent. B) -1.00 percent. C) 0.75 percent. D) 1.33 percent.
Which of the following is true of consumer surplus?
A. It is used to measure the impact of a change in price on the economic well-being of the producers. B. It is the net gain in economic well-being associated with producing and selling the equilibrium quantity of a good. C. It is the difference between the value that one places on a good and the price paid for the good. D. It is graphically represented as the area under the equilibrium price and above the supply curve of a good.