Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If 10,000 units of iced tea are sold
A) the deadweight loss is equal to economic surplus.
B) producer surplus equals consumer surplus.
C) marginal benefit is less than marginal cost.
D) the marginal benefit of each of the 10,000 units of iced tea equals $3.
D
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Use the following cumulative investment schedule to answer the next question. Expected Rate of ReturnCumulative Amount of Investment (in billions)22%$11020150161801021052952380According to the cumulative investment table above,
A. $40 billion worth of investments have expected rates of return between 20% and 22%. B. $150 billion worth of investments have expected rates of return of 20% or lower. C. $260 billion worth of investments have expected rates of return higher than 20%. D. $150 billion worth of investments have expected rates of return exactly equal to 20%.
Assume the United States can use a given amount of its resources to produce either 20 airplanes or 8 automobiles and Japan can employ the same amount of its resources to produce either 20 airplanes or 10 automobiles. The U.S. should specialize in:
a. airplanes. b. automobiles. c. both goods. d. neither good.
The notion that specialization in goods that one can produce at a low opportunity cost will make it possible for trading partners to produce a larger joint output is called
a. the law of absolute advantage. b. the law of comparative advantage. c. the law of production possibilities. d. the exchange maximum principle.
In terms of an economic contribution, building a football stadium
A. has been shown to be futile. The team leaves anyway. B. with public dollars has never been shown to enhance a community's economy. C. to attract a team has always been a successful strategy in growing an community's economy. D. to keep a team that would otherwise leave has always been a successful strategy in growing an community's economy.