An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Jen to produce one TV?
A. 10 radios
B. 1/5 radio
C. 1/3 radio
D. 5 radios
Answer: D
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Which of the following is the best example of a person NOT having clear property rights?
A) a city parks worker who inherits his uncle's town house B) a medical student who lives on campus for his first year of studies C) a retired college professor who builds a bungalow on her oceanfront property D) a dairy farmer who pays off the mortgage on his farm
Why would a profit maximizing monopolist in a contestable market set its price at a level below that which maximizes short run profits?
What will be an ideal response?
According to the kinked demand curve theory of sticky prices, in an oligopolistic market:
A. a price decrease by one firm will not be followed by the other firms. B. the kinked demand curve is inelastic in the upper portion and elastic in the lower portion of the curve. C. the kinked demand curve is elastic in the upper portion and inelastic in the lower portion of the curve. D. a price increase by one firm will be followed by the other firms.
During periods of poor economic performance, real GDP:
A. declines and unemployment rises. B. declines and unemployment declines. C. declines but unemployment typically does not change. D. is unchanged but unemployment rises sharply.