Currently an economy is producing (at a point on its production possibilities frontier) 100 units of good X and the opportunity cost of producing 1X is 3Y. If good X is produced at increasing opportunity costs, then when the economy produces 120 units of good X (on the same PPF) the opportunity cost of producing 1Y (not 1X) could be
A) 1/4X.
B) 1/3X.
C) 1/2X.
D) 1X.
E) none of the above
A
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Linda Evangelista, a supermodel, once said that she "won't get out of bed for less than $10,000 a day." This fee is an example of
A) a reservation wage. B) the demand for Linda's labor. C) a competitive labor market. D) the substitution effect.
Stationary source emissions currently are controlled primarily by
a. performance-based limits b. technology-based standards c. the bubble policy d. the OTC NOX Budget Program
In the specificfactors model, an increase in the price of the manufactured good will cause:
a. a decrease in nominal wages in both the agricultural and manufacturing sectors. b. an increase in real wages in both the agricultural and manufacturing sectors. c. an increase in both nominal and real wages in both the agricultural and manufacturing sectors. d. an increase in nominal wages in both the agricultural and manufacturing sectors.
Monetary policy:
a) Shifts the aggregate supply curve. b) Is controlled by Congress. c) Is controlled by the Federal Reserve. d) Refers to the use of government spending.