Refer to the accompanying figure. If this economy were currently operating at point D, then in order to make more movies:
A. the first productive resources to switch to making movies should be those with the lowest opportunity cost of making milk.
B. the first productive resources to switch to making movies should be those with the highest opportunity cost of making milk.
C. no productive resources would need to switch from making milk to movies because each resource should continue to be used according to its comparative advantage.
D. no productive resources would need to switch from making milk to movies because point D is already efficient.
Answer: B
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Given the information in the figure above, Joe can benefit from trade as far as the price at which he buys Liz's smoothies is
A) below 5 salads per smoothie. B) not higher than 2 salads per smoothie. C) not lower than 2 salads per smoothie. D) not lower than 1 salad per smoothie. E) not higher than 4 salads per smoothie.
Some people think it's unfair that celebrities like Kim Kardashian earn a lot more than people who add so much more value to society, like teachers. What do you think explains this wage differential?
What will be an ideal response?
A falling interest rate ________ the number of investment projects having a positive profit rate, and thus ________ the amount of output that firms demand for themselves
A) increases, raises B) increases, lowers C) decreases, raises D) decreases, lower
Private goods are characterized by two important attributes. What are they?
a. marginality and depletability b. scalability and desirability c. repeatability and reliability d. depletability and excludability