In an Eight-Hour Day,Andy Can Produce Either 24 Loaves of Bread

question 143

Multiple Choice

In an eight-hour day,Andy can produce either 24 loaves of bread or 8 pounds of butter.In an eight-hour day,John can produce either 8 loaves of bread or 8 pounds of butter.The opportunity cost of producing 1 pound of butter is

• A) 1/3 hour for Andy and 1 hour for John.
• B) 1 hour for Andy and 1 hour for John.
• C) 3 loaves of bread for Andy and 1 loaf of bread for John.
• D) 1/3 loaves of bread for Andy and 1 loaf of bread for John.
• E) none of the above

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Definitions:

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and within a specified period.

National Income

The total income earned by a nation's people and businesses, including wages, rent, interest, and profits.

Discretionary Fiscal Policy

involves deliberate changes by government in taxation and spending policies intended to stabilize or stimulate the economy.

Legislative Changes

Modifications or amendments made to existing laws or the introduction of new laws by a governing body or legislature.