It is efficient to produce an additional shirt if the
A) marginal social benefit of producing the shirt is greater than zero.
B) marginal social benefit of producing the shirt is zero.
C) marginal social benefit of producing the shirt is greater than the marginal social cost of producing it.
D) total social benefit from producing shirts is maximized.
C
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Answer the next question on the basis of the following production possibilities tables for two countries, Latalia and Trombonia:Latalia's Production Possibilities ABCDEPork (tons)43210Beans (tons)05101520Trombonia's Production Possibilities ABCDEPork (tons)86420Beans (tons)06121824If these two nations specialize on the basis of comparative advantage
A. Trombonia will produce beans and Latalia will produce pork. B. Latalia will produce beans and Trombonia will produce pork. C. Trombonia will produce both beans and pork. D. Latalia will produce both beans and pork and Trombonia will produce neither.
When tastes are risk loving, a person will always choose a gamble that is riskier over one that is less risky.
Answer the following statement true (T) or false (F)
Very few commodity agreements are successful in bringing together supplier and consumer countries to stabilize commodity prices.
a. true b. false
In a noncompetitive labor market, the firm pays a wage that is less than the workers' value of marginal product because
A. the marginal cost of labor curve is above the labor supply curve. B. the firm's labor demand curve is downward sloping. C. the labor supply curve is above the marginal cost of labor curve. D. labor is supplied inelastically. E. the firm's objective is to minimize the wage rather than to maximize profits.