Refer to the above figure. Which arrows represent items that are not measured in dollar terms?
A) Arrows A and B B) Arrows C and D C) Arrows A and D D) Arrows B and C
D
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Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. There can be gains from exchange
A) if Agnes specializes in the production of X and Brenda specializes in the production of Y. B) if Agnes specializes in the production of Y and Brenda specializes in the production of X. C) only if Agnes becomes faster at producing X. D) only if Brenda becomes faster at producing X or Y.
Your bike is worth $100 and if you park it outside at school there is a 25% chance that it will be stolen. Your utility function for money is U = 100(M). Assume throughout that the bike value and money are interchangeable since you could sell the bike instantly at its value if necessary. What is the maximum you will pay the campus security for the safekeeping service now?
What will be an ideal response?
A government tax on luxury goods may have unintended negative effects because ______.
a. subsidies are more effective incentives than taxes b. use taxes are less profitable than income taxes c. the tax might reduce consumption of those goods d. the tax would redistribute income more unevenly
The ability to produce a good or service at a lower opportunity cost than other producers is
A) absolute advantage. B) comparative advantage. C) opportunity advantage. D) special advantage.