Author Question: At one point along a PPF, 50 tons of coffee and 100 tons of bananas are produced. At another point ... (Read 58 times)

viki · **on:** Jun 29, 2018

At one point along a PPF, 50 tons of coffee and 100 tons of bananas are produced. At another point along the same PPF, 30 tons of coffee and 140 tons of bananas are produced. The opportunity cost of a ton of coffee between these points is

A) 7/5 of a ton of bananas per ton of coffee.
B) 1/2 of a ton of bananas per ton of coffee.
C) 5/7 of a ton of bananas per ton of coffee.
D) 2 tons of bananas per ton of coffee.

Question 2

Which of the following is a tool that is used by the Fed to control the quantity of money?

A) open market operations
B) excess reserves
C) government expenditure multiplier
D) real interest rate