Suppose an American Worker Can Make 20 Pairs of Shoes

question 5

Multiple Choice

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day.On the other hand,a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day.The opportunity cost for the United States is:

• A) 5 apples for each pair of shoes.
• B) 5 pairs of shoes for each apple.
• C) ¹/₅ apple for each pair of shoes.
• D) 1 pair of shoes for every 2 apples.

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Definitions:

Base Year

The base year is a specific point in time used as a reference or benchmark for economic or financial calculations, such as index numbers and inflation measurements.

Percentage Changed

A measure that calculates the degree of change over time, indicating growth or decline in specific variables.

Monopsony Power

A market condition where there is only one buyer for a product or service, giving the buyer significant power over prices and terms.

Workers

Individuals engaged in any form of employment, providing labor to produce goods or deliver services in exchange for wages, salaries, or other forms of compensation.