For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?
a. The opportunity cost of producing watches is higher in Denmark.
b. The opportunity cost of producing cheese is higher in Denmark.
c. The opportunity cost of producing cheese is identical in both countries.
d. It is impossible to compare opportunity costs because the two countries use different currencies.
e. In both countries combined, the opportunity cost of one watch is 150 pounds of cheese.
B
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a. taxes b. subsidies c. effluent fees d. quotas e. a cut in funding
Compared to those with lower incomes, families with higher incomes are more likely to be headed by a
a. person age 65 years and older. b. husband and wife team with one but not the other in the labor force. c. single-parent. d. college graduate.