In the table above, country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. The opportunity cost of producing more of
A) good X is the same for both countries.
B) good Y is the same for both countries.
C) good X is lower in country A.
D) good Y is lower in country A.
D
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What will happen to the demand for Nabisco brand Chips Ahoy! chocolate chip cookies if Pillsbury introduces ready-to-eat chocolate macadamia nut cookies?
In an economy in which the skills, preferences, and motivations of workers vary widely, equality of wage rates would
a. lead to shortages and surpluses of resources and the use of involuntary methods of achieving work participation. b. result in a variety of product prices, but overall GDP would be unaffected. c. be efficient if the wages were fixed at a high enough level. d. reduce the productive incentives of high-skill workers, an effect that would be offset by the increased work effort of low-skill workers.