According to opportunity-cost theory, the cost to an airline of letting its employees fly at no charge
A) depends upon the alternatives available to the employees.
B) is greater around the Christmas holidays.
C) is zero.
D) will depend upon the value employees place upon travel.
Question 2
Some time ago the government of China required many highly skilled technicians and scientists to engage in unskilled agricultural labor in order to develop proper social attitudes. This policy probably caused China to produce
A) at an inappropriate point along its production possibilities frontier.
B) outside its production possibilities frontier with respect to food, but inside with respect to high-technology goods.
C) inside its production possibilities frontier with respect to food, but outside with respect to high-technology goods.
D) inside its production possibilities frontier.
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