In the figure above, when the quantity of milk produced is 300 gallons per day, what is the deadweight loss?
A) $62.50
B) $125
C) $200
D) $937.50
A
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The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of
A) a decrease in the quantity demanded of cereal because of the substitution effect. B) an increase in the quantity demanded of eggs because of the income effect. C) a decrease in the quantity supplied of cereal because of the substitution effect. D) an increase in the quantity supplied of eggs because of the income effect.
A south sea island produces only coconuts. In 2012, the price of a coconut is $1 and the quantity produced is 200. In 2013, the price of a coconut is $1.50 and the quantity produced is 250. 2012 is the base year. Real GDP in 2013 is ________
A) $375 B) $350 C) $200 D) $250 E) $1.50
The movement of households from rural to urban settings reduced the degree of specialization in household production
a. True b. False
The slope of a production possibilities frontier measures:
A. the opportunity cost of producing one good in terms of the other good. B. the trade-off in the consumptionof one good versus the other good C. how much of the resources must be used in order to produce one the goods. D. inefficient production of a good.