Author Question: The city of Austin can buy roads or light rail. If 10 miles of roads cost 1 million and 2 miles of ... (Read 109 times)

Jipu 123 · **on:** Jun 30, 2018

The city of Austin can buy roads or light rail. If 10 miles of roads cost 1 million and 2 miles of light rail cost 10 million, what is the city's opportunity cost of 1000 miles of roads?
a. 100 million
b. 2 miles of light rail
c. 200 miles of light rail
d. 50 million
e. 1,000 million

Question 2

Which of the following would not be considered capital in economics?
a. A delivery van used by Federal Express.
b. 500 in currency.
c. A microprocessor factory
d. In economics, both (a) and (c) are considered capital.