If we consider the reality that each worker has different skills, then the production possibilities frontier would:
A. shift outward.
B. have a convex shape.
C. have a concave shape.
D. be a straight line.
Answer: C
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Refer to Figure 13-1. Ceteris paribus, an increase in the price level would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
A firm faces the following relationship between the real wage it pays and the effort exerted by its workers. The marginal product of labor for this firm is given by MPN = E (100 - N)/9
The firm will choose to pay a wage such that the effort level is A) 20. B) 24. C) 27. D) 29.
Joe's Imports is currently the only dealer for imported Sporto autos on the East Coast, but Fred's Autos may enter the import market and start selling Sporto cars in the East Coast market during the coming year
Joe's Imports can pay the Sporto manufacturer for exclusive East Coast marketing rights, which would deter the entry of Fred's Autos into the market. The payoffs from the possible actions are measured in millions of dollars per year, and the possible outcomes of the sequential entry game are summarized in the following matrix: Fred's Autos enters Fred's Autos does not enter Joe's Imports buys rights ---- 50, 0 Joe's Imports does not buy 40, 40 80, 0 What is the equilibrium outcome from this sequential entry game? A) Joe's Imports buys the marketing rights, and Fred's Autos cannot enter the market. B) Joe's Imports buys the marketing rights, and Fred's Autos enters the market. C) Joe's Imports does not buy the marketing rights, and Fred's Autos enters the market. D) Joe's Imports does not buy the marketing rights, but Fred's Autos does not enter the market.
Which of the following is true? a. U.S. imports are considered a credit item in the balance of payment, because the dollars sold to buy the necessary foreign currency add to foreign claims against U.S. buyers. b. When the U.S. runs a trade deficit in goods and services with the rest of the world, the rest of the world must be running a trade surplus in goods and services with the U.S. c. When
the U.S. runs a trade deficit in goods, it must run a trade surplus in services. d. None of the above is true.