The correct option is: B.
The opportunity cost of providing 100 additional units of medical care would be 400 warheads.
<h3>What is opportunity cost?</h3>
According to microeconomic theory, an activity's opportunity cost is the value or advantage that would be lost if it were chosen over another that would provide a higher return on investment.
<h3>What is opportunity cost and example?</h3>
When economists speak of a resource's "opportunity cost," they are referring to the cost of the next-highest alternative usage of that resource.
For instance, if you spend time and money going to the movies, you are not allowed to read a book at home during that time or spend the money on anything else.
To know more about opportunity cost visit:
brainly.com/question/17373709
#SPJ4
I understand that the question you are looking for is:
Refer to the figure below. If this economy is currently producing at point C, then the opportunity cost of providing 100 additional units of medical care would be:
Select one:
a. 800 warheads.
b. 400 warheads.
c. 200 warheads.
d. 100 warheads.
Answer:
Option "B" is the correct answer to the following statement.
Explanation:
Given:
Exchange rate of 1 Baht= $0.022
Expected inflation in united states (Assume) = 3% = 0.03
Expected inflation in Thailand (Assume) = 10% = 0.10
Computation:
After 1 year rate of 1 Baht in Dollar
The price in US = 1 × (1+0.03) = $1.03
The price in Thailand = 1 × (1+0.10) = 1.10 baht
1 baht = 1.03×0.022÷1.1 = $0.0206
Therefore, 1 baht = $0.21 (approx)
Answer:
It illustrates that the classical model of the price level best applies to economies with persistently high inflation.
Explanation:
When a very low inflation rate has been constant in an economy, and the money supply increases suddenly, in the short run that change will not immediately increase the inflation rate, but instead it will increase real output.
Classical economists argue that an increase in the money supply will immediately affect the inflation rate, but that theory applies mostly to economies that have a certain level of inflation. For example, for the past 12 years, European nations have been experiencing very low inflation rates, sometimes even negative rates. But during that same period, the European Central Bank has carried on a huge expansionary policy. It favored economic growth, although not as much as expected, but it didn't skyrocket inflation rate as the classical economy model predicted.
Answer:
B) Abstraction forms an important part of economic analysis.
Explanation:
Economic abstraction refers to ignoring certain factors while doing economic analysis. Some minor or even important economic details must be assumed when trying to analyze certain situations. That is why economists love to use ceteris paribus (everything else constant). Macroeconomic theory is impossible to prove in a scientific way, only certain microeconomic theories can be tested scientifically. In order to perform macroeconomic analysis, economists must simplify the real world, since economy is too complex and has too many factors that can alter any possible analysis. It is impossible to analyze a nation's economy as a whole since millions of people and businesses make billions of economic decisions very day.
