Based on the Information in Table 35

question 99

Multiple Choice

Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. The opportunity cost of producing 1 ton of soybeans in the United States is

• A) 1/5 of a computer.
• B) 1/3 of a computer.
• C) 3 computers.
• D) 5 computers.

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Definitions:

Stagflation

A condition of slow economic growth and relatively high unemployment accompanied by rising prices, or inflation, challenging the usual economic assumptions.

Permanent Income

A theory suggesting that an individual's consumption choices are based on their long-term income expectations rather than their current income.

Economic Decisions

Refers to choices made by individuals, businesses, or governments regarding allocation of resources to satisfy various needs and wants.

Aggregate Supply

The total supply of goods and services available to a particular market from producers at different price levels.