Suppose a society begins by producing 3 units of X and 4 units of Y and then alters production to 4 units of X and 4 units of Y. If the quantity and quality of resources and the technology being used remain unchanged, then:
a. 3 units of X and 4 units of Y are a combination best represented by a point inside the production possibilities curve [PPC].
b. we can conclude that the society has moved along the PPC.
c. we can conclude that resources were being fully utilized at 3 units of X and 4 units of Y.
d. we can conclude that resources were being efficiently utilized at 3 units of X and 4 units of Y.
e. 3 units of X and 4 units of Y are a combination best represented by a point outside the PPC.
a
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Consider the monopsony in the above figure. The monopsony will hire ________ hours per week
A) 200 B) 400 C) 600 D) None of the above answers is correct.
How has the composition of trade flows changed from the early twentieth century to today? Compared to the past, is anything about trade today new?
What will be an ideal response?
Suppose that you have wheat in storage and that the price of wheat is currently $5.00 per bushel. You can sell your wheat immediately but you also have an opportunity to sell in six months. At that time, you believe the price of wheat will be $5.60 per bushel. Your cost of storage is $0.75 per bushel for six months. One dollar in six months is worth one dollar today (no discounting). What strategy is profit maximizing?
A. Hold onto your wheat and sell in six months. B. Sell your wheat today. C. Minimize your losses by exiting the wheat market. D. Expand production to sell more wheat.
"Leaning against the wind" is exemplified by a(n)
a. tax increase when there is a recession.
b. increase in the money supply when there is a recession.
c. decrease in government expenditures when there is a recession.
d. All of the above are correct.