The endpoints of an economy's production possibilities frontier (PPF) for goods X and Y are: (2,000X, 0Y) and (0X, 500Y). Furthermore, the opportunity cost between these two goods is always constant. Which of the following combinations of the two goods, X and Y, lies on the economy's PPF?
A) 400 units of X and 200 units of Y
B) 600 units of X and 250 units of Y
C) 400 units of X and 150 units of Y
D) 1,000 units of X and 250 units of Y
E) 300 units of X and 150 units of Y
Answer: D) 1,000 units of X and 250 units of Y
You might also like to view...
When an individual is frictionally unemployed, the unemployment arises in part from
A) a short-term elimination of jobs because of a slowdown in business activity. B) individuals searching for appropriate employment. C) the permanent elimination of jobs because of a change in the structure of the economy. D) a reduction in the overall demand for workers' skills.
Your grandfather tells you that he earned $7,000/year in his first job in 1961. You earn $35,000/year in your first job in 2016. You know that average prices have risen steadily since 1961. You earn
A) more than 5 times as much as your grandfather in terms of real income. B) less than 5 times as much as your grandfather in terms of real income. C) less than 5 times as much as your grandfather in terms of nominal income. D) 5 times as much as your grandfather in terms of real income.
What is dumping? Who benefits and who loses from dumping?
What will be an ideal response?
Suppose that adding a new disc drive to your computer increases its value by $100. The disc drive costs $75 and takes you 2 hours to install. If you value your time at $6 per hour then the net benefit of installing the disc drive is:
A. $13. B. $19. C. $25. D. $88.