Ken and Traci Are Two Woodworkers Who Both Make Tables

question 10

Multiple Choice

Ken and Traci are two woodworkers who both make tables and chairs.In one month,Ken can make 3 tables or 18 chairs,whereas Traci can make 8 tables or 24 chairs.Given this,we know that the opportunity cost of 1 table is

• A)1/6 chair for Ken and 1/3 chair for Traci.
• B)1/6 chair for Ken and 3 chairs for Traci.
• C)6 chairs for Ken and 1/3 chair for Traci.
• D)6 chairs for Ken and 3 chairs for Traci.

---

Definitions:

Short Run

A period of time during which at least one input, such as plant size, is fixed and cannot be changed.

Unemployment

The condition in which individuals who are capable of working and are seeking work are unable to find employment.

Phillips Curve

An economic theory that suggests an inverse relationship between rates of unemployment and corresponding rates of inflation.

Money Supply

Refers to the total amount of money available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.