Firm A can produce a unit of output with 10 hours of labor and 5 units of material. Firm B can produce a unit of output with 5 hours of labor and 10 units of material
Firm C can produce a unit of output with 10 hours of labor and 10 units of material. If the prices of labor and material are $10 per hour and $5 per unit, respectively, which of these firms is the most technologically efficient? A) firm A only
B) firm B only
C) firm C only
D) Firms A and B could both be technologically efficient.
D
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The monetarist statistical evidence examines the correlations between both ________ and ________ with ________
A) money; aggregate spending; the unemployment rate B) money; autonomous expenditures; the unemployment rate C) money; consumption spending; aggregate spending D) money; autonomous expenditures; aggregate spending
Which of the following would likely be studied by a macroeconomist rather than a microeconomist?
a. the effect of an increase in the alcohol tax on the market for beer b. the effect of foreign competition on the domestic auto industry c. the effect of a price war in the airline industry d. the effect of an increase in the minimum wage on an economy's overall rate of unemployment
In a random effects model, we assume that the unobserved effect is correlated with each explanatory variable.
Answer the following statement true (T) or false (F)
The assertion that "there is no free lunch" means that
A. there are always trade-offs between economic goals. B. marginal analysis is used in economic reasoning. C. rational choices do not involve excessive costs. D. all production has an opportunity cost.