Suppose an acre of land yields 100 bushels of corn and that one bushel of corn provides enough seed for one-quarter of an acre of land. The opportunity cost of consuming another 100 bushels of corn today is
A) 100 bushels of corn next year.
B) 25 bushels of corn next year.
C) 10 bushels of corn next year.
D) 2.5 bushels of corn next year.
Answer: B
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Refer to the information above. What is the value of the exponent for uneducated labor (L)?
A) 0.75 B) 0.40 C) 0.35 D) 0.15
Resource markets are like any other market in that
a. the increase in quantity supplied in response to a higher price will generally be greater in the long run than in the short run. b. the amount demanded of a resource is inversely related to its price. c. higher prices encourage people to search for substitutes. d. all of the above are correct.
The elasticity which shows the responsiveness of the demand for a good due to changes in the price of a related good is the:
A. income elasticity. B. log-linear elasticity. C. own price elasticity. D. cross-price elasticity.
Refer to the above table. Suppose one country has a per capita real GDP of $1000 and another has a per capita real GDP of $10,000, or ten times larger. If both countries have a growth rate of 5 percent, how much larger will per capita real GDP be in the second country be than the first after 50 years?
A. 4 times larger B. 5 times larger C. 10 times larger D. 8 times larger