Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country B could potentially make would be:
A. (400 iPods, 2,000 tablets).
B. (300 iPods, 500 tablets).
C. (200 iPods, 1,500 tablets).
D. (100 iPods, 2,000 tablets).
B. (300 iPods, 500 tablets).
You might also like to view...
Government intervention will not be necessary when voluntary contracting internalizes an externality. Which of the following is NOT a necessary condition for this to occur?
A) well-defined private property rights B) low transaction costs C) large numbers of individuals involved in the transactions D) low contract enforcement costs
A competitive market is one in which
a. there is only one seller, but there are many buyers.
b. there are many sellers and each seller has the ability to set the price of his product.
c. there are many sellers and they compete with one another in such a way that some sellers are always being forced out of the market.
d. there are so many buyers and so many sellers that each has a negligible impact on the price of the product.
How are total costs determined?
a. fixed costs x output b. sunk costs + variable costs c. fixed costs + variable costs d. marginal costs / output
There are never shortages or surpluses when the price in a market is equal to the equilibrium price for the market.
Answer the following statement true (T) or false (F)