Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Which of the following is true?
a. Adam has an absolute advantage in oranges and a comparative advantage in apples.
b. Karl has an absolute advantage in oranges and a comparative advantage in oranges.
c. Karl has an absolute advantage in both apples
and oranges.
d. Karl has an absolute advantage and a comparative advantage in apples.
b
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Based on the data in the table above, when Decent Donuts hires eight workers, the
A) average product of labor is greater than the marginal product. B) marginal product of labor is greater than the average product. C) marginal product of labor is equal to the average product. D) marginal product of labor is not defined.
A $130,000 investment in new equipment this year will increase your firm's profits by $50,000 in each of the next 3 years. What is the net present value of this investment if your firm's opportunity cost of capital is 10 percent?
A) -5,657 B) 5,657 C) 124,343 D) 128,850
Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year.Last year, Christine's explicit costs were ________, and her implicit costs were ________.
A. $51,000; $40,000 B. $18,000; $40,000 C. $36,000; $140,000 D. $15,000; $43,000
If commercial banks are maintaining a 5 percent reserve/deposit ratio and the Fed lowers the required reserve ratio to 3 percent, then banks may ________ their loans and deposits, and the money supply may ________.
A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease