Which of the following is correct?
a. In Lebos, the opportunity cost of producing one unit of food is equal to one unit of
clothing.
b. In Slavia, the opportunity cost of producing one unit of food is equal to two units of
clothing.
c. The opportunity cost of producing food in Lebos is less than the opportunity cost of
producing food in Slavia.
d. All of the above are correct.
a. In Lebos, the opportunity cost of producing one unit of food is equal to one unit of
clothing.
b. In Slavia, the opportunity cost of producing one unit of food is equal to two units of
clothing.
c. The opportunity cost of producing food in Lebos is less than the opportunity cost of
producing food in Slavia.
d. All of the above are correct.
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Explain how lower tax rates might lead to higher reported GDP levels
Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The amount of the tax paid by the consumer is
A. $8. B. $1. C. $3. D. $2.