Consider the production possibilities frontier in the figure shown. The opportunity cost of moving from point A to point B is:
A. 5 cigars per car.
B. 5 cars per cigar.
C. 10 cars per cigar.
D. 10 cigars per car.
Answer: A
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An employer-employee relationship is
a. a nonmarket relation b. a principal-agent relation c. a comparable worth relation d. a substitution relation e. a winner's curse
It may be unrealistic to assume that consumer tastes are the same across nations and invariant with respect to income:
A. so it is not one of the HO assumptions. B. but it is an HO assumption because it enables the analysis to focus on other issues that drive trade and prices. C. but it actually is true so it is an HO assumption. D. and it is not an HO assumption because consumer tastes within a nation are not relevant to international trade.
In order to shift the current production possibilities curve outward, an economy
A. Must use more of the existing resources. B. Will never be able to produce a combination of goods and services outside the current production possibilities curve. C. Can raise the prices of goods and services to encourage firms to produce more. D. Must find additional resources or better technology.
Exhibit 6-15 Long-run average cost
?
Given the short-run average total cost curves in Exhibit 6-15, what level of output per week minimizes average total cost?
A. 500 units. B. 1,000 units. C. 1,500 units. D. 2,000 units.