Refer to Figure 11-14. Consider the following statements:
a. For each country, the marginal product per dollar spent on labor equals to the marginal product per dollar spent on capital.
b. The price of labor is relatively higher in the United States than in China and the price of capital is relatively lower in the United States than in China.
c. The price of labor and the price of capital are relatively higher in the United States than in China.
Based on the figure, which of the statements above is true?
A) All of the statements are true. B) statements b and c only
C) statements a and c only D) statements a and b only
D
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Suppose the nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces only teapots, it can make 80 per day. If Arcadia produces only surfboards, it can make 30 per day
What is the opportunity cost of 1 teapot in Arcadia? A) 3/8 of a surfboard B) 8/3 surfboards C) 30 surfboards D) 80 surfboards
A direct implication of the special interest theory of government is that _____
a. political pressure from special interests pushes government to expand b. special interests get whatever they want c. special interests do not get what they want under Incrementalism d. the general public general can apply more pressure than special interests and thus will move the budget in drastic ways, depending upon public sentiment
Commodity money is
a. backed by gold. b. the principal type of money in use today. c. money with intrinsic value. d. receipts created in international trade that are used as a medium of exchange.
A natural monopoly
A. arises as a result of legal barriers to entry. B. occurs when one firm controls a natural resource. C. arises when one firm can meet the entire market demand at a lower average total cost than two or more firms. D. Both answers A and B are correct. E. Both answers A and C are correct.