The table below shows the units of land and labor required to produce a unit of bread and cheese respectively in Country X. Identify the correct statement. 1 Unit of Bread1 Unit of CheeseLabor Input5 units20 unitsLand Input4 units10 units
A. Production of bread is relatively labor-intensive in the country.
B. The opportunity cost of producing an extra unit of bread is four units of cheese.
C. The domestic price ratio in the country is two units of bread per unit of cheese.
D. Production of bread is relatively land-intensive in the country.
Answer: D
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If regulators of the local gas and water utility companies require those firms to price their service at marginal cost
A) there would be a deadweight loss in their markets. B) the firms might require a tax-financed subsidy to survive. C) their customers would enjoy no consumer surplus. D) None of the above answers are correct.
Is relative PPP a useful equilibrium concept for describing general trends in exchange rates? Under what kinds of circumstances would the concepts of PPP be best applied?
What will be an ideal response?
A government spending and taxation policy to achieve macroeconomic goals is known as:
a. countercyclical policy. b. fiscal policy. c. monetary policy. d. a balanced budget. e. presidential discretion.
Which of the following is part of the economic way of thinking?
a. Opportunity costs will always be incurred when scarce resources are used to produce a good. b. When the cost of an option increases, individuals will be less likely to choose it. c. In addition to their immediate direct effects, economic actions often generate secondary effects that are observable only after the passage of time. d. All of the above are part of the economic way of thinking.