If Germany Used All Its Resources to Produce Bread,suppose It

question 191

Multiple Choice

If Germany used all its resources to produce bread,suppose it could produce 40 million loaves of bread.If it used all its resources to produce milk,it could produce 20 million gallons of milk.Then Germany's opportunity cost of producing a ______ is ______.

• A) loaf of bread;1/2 a gallon of milk
• B) loaf of bread;2 gallons of milk
• C) gallon of milk;1/2 a loaf of bread
• D) gallon of milk;1 loaf of bread

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Definitions:

Speculative Motive

The intent to hold cash for the purpose of taking advantage of future financial opportunities that may arise.

Opportunity Cost

The loss of potential gain from other alternatives when one particular alternative is chosen.

Rate Of Interest

The percentage of an amount of money which is charged for its use per period of time, often expressed annually.

Unit Banking States

States in the U.S. where banks are required to operate only a single banking office, limiting their physical presence and expansion.