Assume that Nick and Faldo each has 2 hours available. If each person divides his time equally between the production of wheat and cloth, then total production is
A. 8 bushels of wheat and 15 yards of cloth.
B. 16 bushels of wheat and 30 yards of cloth.
C. 14 bushels of wheat and 27 yards of cloth.
D. 28 bushels of wheat and 34 yards of cloth.
Answer: C. 14 bushels of wheat and 27 yards of cloth.
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The study of how a particular firm might choose to maximize its profits would fall into what type of analysis?
A) macroeconomics B) microeconomics C) labor economics D) aggregate economics
The school of thought that assumes that real GDP is determined by aggregate supply, whereas the equilibrium price level is determined by aggregate demand is known as _____
a. neoclassical economics b. classical economics c. new Keynesian economics d. Keynesian economics e. Marxist economics
In order for education to be effective as a signal of worker productivity it must be
A. easy for everyone to get a college degree. B. that the employee has taken classes in economics. C. costly for less productive workers to imitate. D. none of the above make education an effective signal.
Refer to the figure below. This graph describes a good that:
A. generates negative externalities. B. the government should tax. C. generates positive externalities. D. should be banned.