Refer to Figure 2-14. Which country has a comparative advantage in the production of popsicles?
A) Greenland B) They have equal productive abilities.
C) Iceland D) neither country
A
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In the graph shown below, assume policy changed overall environmental quality from E1to E2. Based on this information, the area or distance that represents an estimate of incremental benefits to achieve personal environmental quality of X2, according to the averting expenditure method (AEM), is
a. edfhX2 b. edhX2 c. dfh d. none of the above
If the Fed increases the supply of bank reserves, ________
A) consumption falls B) investment falls C) the federal funds rate falls D) the inflation rate falls
The price system always works instantaneously
Indicate whether the statement is true or false
Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. What is Coke's best response function?
A. QC = 200PP - 67.5 B. QC = (90 + 400PP) - 500PC C. PC = 0.315 + 0.4PP D. PC = (0.18 + 0.8PP) - 0.002QC