QUESTION 3An economy produces only two goods, pizzas and cakes. If the opportunity cost of pizzas in terms of cakes is equal to 1/2, thena.in order to produce one more pizza, the economy needs to give up on half a cakeb.in order to produce one more pizza, the economy needs to give up on two cakesС.in order to produce one more cake, the economy needs to give up on half a pizzad.none of the above is correctO aQUESTION 4One way to characterize the difference between positive statements and normative statements is as follows:Positive statements tend to reflect optimism about the economy and its future, whereas normative statements tend to reflect pessimism about thea.economy and its future.b.Positive statements offer descriptions of the way things are, whereas normative statements offer opinions on how things ought to be.Positive statements involve advice on policy matters, whereas normative statements are supported by scientific theory and observation.с.d.Economists outside of government tend to make normative statements, whereas government-employed economists tend to make positive statements.O aa all answers.

Opportunity cost is the cost of the best alternative. It shows the units of the loss in order to get…

An economy produces only two goods, pizzas and cakes. If the opportunity cost of pizzas in terms of cakes is equal to 1/2, the a. in order to produce one more pizza, the economy needs to give up on half a cake in order to produce one more pizza, the economy needs to give up on two cakes b. in order to produce one more cake, the economy needs to give up on half a pizza none of the above is correct C. d.

An economy produces only two goods, pizzas and cakes. If the opportunity cost of pizzas in terms of cakes is equal to 1/2, the a. in order to produce one more pizza, the economy needs to give up on half a cake in order to produce one more pizza, the economy needs to give up on two cakes b. in order to produce one more cake, the economy needs to give up on half a pizza none of the above is correct C. d.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 4PA

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