Mike is a college student who works part time and earns $100 per week. He spends his entire income on two goods: pepperoni pizzas and bottles of soda. The price of a pepperoni pizza is $10 and the price of a bottle of soda is $2
What is the opportunity cost of a pepperoni pizza? What is the opportunity cost of a bottle of soda?
The opportunity cost of a pepperoni pizza is 5 bottles of soda. The opportunity cost of a bottle of soda is 1/5 of a pepperoni pizza.
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The substitution of machines for labor
A) does not reduce employment opportunities because labor is required to produce the machines. B) is not likely to reduce employment opportunities because as many or more workers will usually be demanded to produce, service, and operate the machines. C) will proceed more rapidly in a society the more rapidly the cost of hiring workers rises. D) will reduce employment opportunities if increased competition associated with the introduction of machinery lowers product prices.
If losses are unavoidable in an uncertain world, then
What will be an ideal response?