In Figure 35

question 56

Multiple Choice

In Figure 35.1, what is the opportunity cost of motorcycles in Japan?

• A) 1/2 of a DVD player per motorcycle.
• B) 1 DVD player per motorcycle.
• C) 2 DVD players per motorcycle.
• D) 3 DVD players per motorcycle.

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Definitions:

Economic Rent

The income earned from the use of resources above what is necessary to keep those resources in their current use.

Real Wages

Salaries recalibrated based on inflation rates to indicate the real value of earnings in terms of buying capacity.

Real Wages

Salaries recalibrated to account for inflation, indicating the actual buying capability of earnings.

Income Earned

Refers to all forms of compensation or remuneration received from employment, including wages, salaries, bonuses, and other earnings.