Given the PPF below, what is the opportunity cost for 1 car? .4 computers 2 comp

ID: 1129177 • Letter: G

Question

Given the PPF below, what is the opportunity cost for 1 car?

.4 computers

2 computer

2.5 computers

5 computers

Bruce uses a travel website to compare the prices of different flights. This is an example of using the dollar as a ___________________.

Medium of exchange.

Unit of account.

Store of value.

The U.S. Dollar is an example of

Commodity money.

Fiat money.

Worthless money.

In the long run, an increase in prices will result in __________ in the amount of goods and services firms produce, ceteris paribus.

An increase.

A decrease.

No change.

.4 computers

2 computer

2.5 computers

5 computers

Cars Computers

Answer.)

Q1.) 2.5 computers

Opportunity cost of 1 car = 5 / 2 = 2.5 computers

Q2.) B.) Unit of account.

A unit of account in economics is a nominal monetary unit of measure or currency used to represent the real value (or cost) of any economic item.

Q3.) B.) Fiat money.

unlike currencies backed by gold or silver, fiat money does not have any intrinsic value. The U.S. dollar is an example of fiat money.

Q4.) C.) No change.

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