The question of "What goods and services get produced?" most closely relates to which of the following issues?
A) obtaining specialized training to increase one's income
B) building a missile defense system, or putting a computer in every elementary school classroom
C) taxing high income workers to give payments to poor households
D) the distribution of goods and services in the economy
E) producing goods and services in the least costly manner
B
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The HO theorem states that a country will have comparative advantage in the good whose production is relatively intensive in the ________ with which the country is relatively abundant
A) tastes B) technology C) factor D) opportunity costs
A profit maximizing monopolist
A) is guaranteed to lose money because of a lack of competition. B) is not guaranteed to make a positive profit. C) is guaranteed to make a positive profit, hence the desire to be a monopolist. D) is guaranteed to make a non-negative profit, otherwise government would step in to assist.
George's parents let him use the family car whenever he wants, but require that he pays for all gas he uses. George has been driving the car 100 miles per week
His parents want to limit how much he drives the family car, but don't want to impose a major burden on his finances. Mom's plan is to charge him a dollar for each ten miles he drives the car (per week), but to increase his allowance by $10. Dad thinks this plan will have no effect on his driving since he is going to get the money back at the end of the week. Who is right? Explain.
Suppose a monopsonist wants to hire more workers. If it has to pay the same wage rate to all of its workers
a. the marginal labor cost will fall while the wage rate will rise b. the wage rate will fall while the marginal labor cost will rise c. the difference between the wage rate and the marginal labor cost will decrease d. the difference between the wage rate and the supply curve of labor will increase e. both the wage rate and the marginal labor cost will increase