Use the following table to answer the question below. Dave's Production Possibilities ScheduleSimon's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160080201204060408080406040120208001600Who has the comparative advantage in the production of corn?
A. Simon
B. Dave
C. Both
D. Neither
Answer: B
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Why is GDP only an imperfect valid measure of the value of output produced by an economy?
What will be an ideal response?
In the early 1980s, many people found themselves unable to purchase new homes because of:
a. rising prices and interest rates. b. rising prices and falling interest rates. c. new government restrictions on mortgages for first-time buyers. d. increases in income tax rates.
Economists collect data on prices in every country and develop an index that describes the overall difference in prices between countries called the:
A. purchasing power parity index. B. price parity purchasing index. C. consumer price index. D. consumer purchasing power index.
Given the same marginal revenue product (MRP) and supply curves, the equilibrium quantity of labor employed in a monopsonistic labor market will be:
A. equal to that in a competitive labor market. B. less than that in a competitive labor market. C. greater than that in a competitive labor market. D. there is insufficient information for a conclusion.