Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except
A) engage in mutually beneficial trade with other nations.
B) increase the variety of products that it can consume with no increase in resources.
C) consume a combination of goods that lies outside its own production possibilities frontier.
D) produce a combination of goods that lies outside its own production possibilities frontier.
Answer: D
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Refer to Cost of Production. The short-run average cost of producing 50 units of output per week is
The following questions refer to the diagram below. The wage rate is assumed to be $12 per hour, the rental rate is assumed to be $6 per hour, and capital is assumed to be fixed in the short run at 10 hours.
a. $3 per unit.
b. $3.60 per unit.
c. $5 per unit.
d. $2.77 per unit.
Private markets will not provide the efficient quantity of a public good because
A) of the principle of minimum differentiation. B) public goods are rival and excludable. C) of rational ignorance. D) of the free-rider problem.
If marginal productivity is decreasing as more labor is hired, then average productivity must be decreasing as well
Indicate whether the statement is true or false
Describe the basic motives for businesses to merge
What will be an ideal response?