The main reason U.S. farmers can produce more than farmers in China is that they
A. have more land.
B. have more capital.
C. have more labor.
D. are better trained.
B. have more capital.
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What do economists mean by the phrase "sunk costs are sunk"?
a. Sunk costs are irretrievable, but they do lower profits and thus affect the firm's output level. b. Sunk costs are a primary reason why marginal costs tend to increase. c. Sunk costs cannot be recovered and are irrelevant to future decision making. d. Sunk costs lower consumer welfare, because producers "pass on" these costs in the form of higher prices.
Assume that Joe and Sarah, from the figure shown, are also dating, in addition to working together on the joint school project. Further assume that Joe is madly in love with Sarah, who is an excellent student. Sarah tells Joe that she will break up with him if he does not put forth high effort on this project. This future punishment by Sarah is an example of:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. a commitment strategy.
B. an effort optimization strategy.
C. an ultimatum.
D. a bargaining strategy.
Ceteris paribus, which of the following would cause the aggregate demand curve to shift to the left?
a. lower personal taxes b. a rise in consumer confidence c. greater stock market wealth d. a reduction in transfer payments
Given the slope of a supply curve, consumers take a relatively smaller share of a tax if their demand becomes more price elastic.
Answer the following statement true (T) or false (F)