Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing
A) His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost.
B) The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision.
C) He loses a total of $120 per day, so his decision is irrational.
D) Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision.
E) Adam is definitely making a decision that is in the social interest.
A
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A problem with Leontief's methodology is that
A) he had no information on U.S. and foreign factor endowments. B) he did not use information on foreign factor intensities. C) he ignored the roles of other factors of production such as natural resources. D) All of the above are problems.
Suppose a nation has a total population of 50,000,000. Out of that, 50% are in the labor force and 23,000,000 people are employed. What is the nation's unemployment rate?
A) 4.0% B) 8.0% C) 12% D) 14%
In an economy which produces two goods X and Y, using two inputs L and K, efficient input use occurs when
A) MRTSLKX = MRSLKY B) MRTXY = MRSXY C) MRSX/PX = MRSY/PY D) MRTSLKX = MRTSLKY
Equilibrium price in international trade is the common price between exporting and importing countries
a. True b. False Indicate whether the statement is true or false