If the number of laborers is 200 and the capital stock is $20,000 . the capital-labor ratio is
a. $1/100
b. $100
c. $20,100
d. $4,000,000
e. $19,900
B
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Which of the following functions are performed by depository institutions?
I. They make long-term loans using short-term deposits, thereby creating liquidity. II. They efficiently gather funds from a large base of depositors. III. They concentrate risk. A) I only B) II only C) III only D) I and II
The U.S. can produce pizza for $7.50 each and barrels of beer for $37.50 each, and Germany can produce pizza for €5 each and barrels of beer for €15 each (€ is the symbol for the euro, the currency Germany uses). If the exchange rate is 1
50 $/€ then A) the U.S. has a comparative advantage in the production of beer. B) neither country has a comparative advantage in the production of beer. C) the U.S. has a comparative advantage in the production of pizza. D) the U.S. has a comparative advantage in the production of beer and pizza.
A cost which has been incurred and cannot be recovered is called a:
a. Opportunity Cost b. Monetary Cost c. Variable Cost d. Sunk Cost
A perfectly competitive firm faces a market clearing price of $150 per unit. Average total costs are at the minimum value of $200 per unit at an output rate of 100 units. Average variable costs are at the minimum value of $100 per unit at an output rate of 50 units. Marginal cost equals $150 per unit at an output rate of 75 units. It can be concluded that the short-run profit-maximizing output rate is
A. 75 units, at which the firm earns positive economic profits per unit sold. B. 50 units, because price is less than average variable costs. C. 75 units, at which the firm earns zero economic profits per unit sold. D. 75 units, at which the firm earns negative economic profits per unit sold.