Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost of a pair of shoes is ________ for the United States than Canada, so Canada has the ________ advantage in shoe production.
A. lower; comparative
B. higher; comparative
C. higher; absolute
D. lower; absolute
Answer: B
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The demand for a good is more price inelastic if
A) its price is higher. B) the percentage of income spent on it is larger. C) it is a luxury good. D) it has no close substitutes.
Median income is the:
A. in the level earned by the household exactly in the middle of the national income distribution. B. the total national income divided by the total population. C. the total national income divided by the total number of households. D. 50% of the top quintile level of income.
In the long run, if the prices of goods and services paid by consumers increase the long-run aggregate:
A. supply will increase. B. supply will decrease. C. supply will stay the same. D. demand will increase.
A firm estimates its long-run production function to beQ = -0.0075K3L3 + 12K2L2Suppose the firm employs 12 units of capital. At ________ units of labor, average product of labor begins to diminish.
A. 32.21 B. 76.66 C. 82.27 D. 66.67 E. 44.44