Table 2-10 Table 2-10 Shows the Output Per Month of Month

question 252

Multiple Choice

Table 2-10
Table 2-10 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-10. What is Fred's opportunity cost of making a pogo stick?

• A) 1/3 of a unicycle
• B) 3 unicycles
• C) 6/7 of a pogo stick
• D) 1/2 of a unicycle

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Definitions:

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used to analyze the effect of one variable on another by holding all other relevant factors constant.

Other Things Equal

A Latin term (ceteris paribus) used in economics to signify examining the effect of one changing factor when all other factors remain constant.

Normative Economic Statement

An opinion or judgment that reflects values or what ought to be, rather than factual claims about what is.

Social Security

A government program designed to provide financial support to individuals during retirement, disability, or upon the death of a primary wage earner.