Which of the following activities are production?
A) combining flour, milk, and eggs to make cookies
B) moving coal from southern Illinois to an electrical power plant in northern Illinois
C) taking ice cubes from a tray to put in a drink
D) All of the above are production.
D
You might also like to view...
A worker has negotiated a nominal wage contract with his employer for a period of 3 years. Which of the following will happen if the rate of inflation rises beyond the worker's expectation during this period?
A) The worker's real wage will increase. B) The worker will be better off. C) The company's shareholders will be worse off. D) The worker will be worse off.
In the summer of 2008, the price of gasoline increased greatly. If the demand curve for gasoline did not shift, which of the following occurred?
A) Drivers received no consumer surplus after the price increase. B) Consumer surplus increased if drivers drove less. C) Consumer surplus decreased. D) If consumers drove the same amount, they received less total benefit. E) Both the marginal benefit from each gallon of gasoline and the consumer surplus from each gallon of gasoline decreased.
Which of the following is a TRUE statement about the economic assumption of rationality?
A) Individuals who are rational necessarily ignore the interests of others. B) Individuals generally act as though they are rational. C) Individual behavior may be irrational but group behavior is always rational. D) People make decisions as if they are omniscient.
Refer to the graphs and information below. It can be deduced that:
Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at different levels of economic efficiency. The production possibilities curves for the two countries are shown in the graphs below.
A. Greece has a comparative advantage in chemicals
B. Greece has the absolute advantage in both products
C. Italy has a comparative advantage in chemicals
D. It is more costly in terms of resources to produce steel in Italy