Refer to Table 2-7. What is Minnie's opportunity cost of making a hat?
A) 1/5 of an umbrella B) 1/4 of an umbrella C) 4 umbrellas D) 10 umbrellas
B
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Argentina's financial crisis was due to
A) poor supervision of the banking system. B) a lending boom prior to the crisis. C) fiscal imbalances. D) lack of expertise in screening and monitoring borrowers at banking institutions.
If the government subsidizes an activity it believes is generates a positive externality and it really only produces an inframarginal positive externality then the subsidization will result in an overproduction of the activity in question
a. True b. False
Which of the following was the reserve currency under the gold exchange standard?
a. U.S. dollar b. Euro c. Great Britain pound d. Australian dollar e. Deutsche mark
If average variable cost is falling, we know that:
a. marginal cost is falling. b. marginal cost is less than average variable cost. c. marginal cost is greater than average variable cost. d. marginal cost is rising.