In the above figure, if the price is $4 per unit, how many units will a profit maximizing perfectly competitive firm produce?
A) 0
B) 5
C) 20
D) 30
A
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Refer to the scenario above. What is the sum of the payoffs to the firms if both the firms choose Strategy X?
A) 6 B) 0 C) 1 D) -1
If Japan gives up ten bushels of rice to produce one bicycle, while the United States gives up five bushels of rice to produce one bicycle, then:
a. the opportunity cost of producing bicycles in the United States is higher than in Japan. b. Japan has a comparative advantage in the production of bicycles. c. the United States has an absolute advantage in the production of rice. d. total output will be highest if the United States specializes in rice and Japan specializes in bicycles. e. total output will be highest if Japan specializes in rice and the United States specializes in bicycles.
Tariffs and quotas are effective in protecting industry
a. but at very high cost per job saved. b. and at very low cost per job saved. c. but have not saved any jobs in the industries. d. and do not distort the economy in the process.
At the beginning of a year, decision makers expect the general level of prices to increase at a 6 percent annual rate. The CPI increases from 150 to 154.5 during the year; this indicates that
a. decision makers underestimated the rate of inflation during the year. b. decision makers overestimated the rate of inflation during the year. c. decision makers accurately forecast the rate of inflation during the year. d. the rate of inflation during the year was 4.5 percent.