Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 belt in Morocco?
A) 1/2 of a sword B) 1 sword C) 1.5 swords D) 2 swords
B
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Sam uses Craig's Netflix account to watch movies and shows but does not actually pay for the service himself. This is an example of
A. The free-rider problem B. Economic optimization C. Scarcity D. Specialization and trade
Between September 2009 and September 2010, the recovery of private inventories, as shown in Figure 19.1, was far stronger than the overall economy's recovery from the Great Recession. Which is the most reasonable inference?
A) Persistently weak aggregate demand gave producers no alternative but to place current output into storage. B) Businesses overestimated the strength of the recovery, which lead to overstocking of inventories. C) Financial constraints had forced businesses to contract inventories by more than they otherwise would have chosen. The period beginning in September 2009 reflects the attempt by businesses to correct this. D) Generally poor weather conditions in the final months of the year in the northern hemisphere make it less costly to store goods than to transport them to consumers.
At the optimal consumption bundle, the marginal rate of substitution of leisure for consumption is equal to
A) the real wage and the budget line is tangent to an indifference curve. B) minus the real wage and the budget line is tangent to the indifference curve. C) the real wage and the budget line intersects the indifference curve. D) minus the real wage and the budget line intersects the indifference curve.
In the game in Scenario 13.2, the equilibrium strategies
A) are for both firms to offer rebates. B) is for ABC to offer a rebate, and XYZ not to offer a rebate. C) is for XYZ to offer a rebate, and ABC not to offer a rebate. D) are for both firms to offer no rebate. E) does not exist in pure strategies.