Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country A could potentially make would be:
A. (1,000 iPods, 500 tablets).
B. (500 iPods, 500 tablets).
C. (500 iPods, 250 tablets).
D. (750 iPods, 150 tablets).
C. (500 iPods, 250 tablets).
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Suppose tastes for consumption now and consumption in the future have constant elasticity of substitution. It may then be the case that a tax on interest income is efficient even if savings (defined as current income not consumed) fall in response to the tax.
Answer the following statement true (T) or false (F)
Jodie has indifference curves for CDs and colas, with CDs on the vertical axis. The flatter her indifference curves are, the
A) smaller her average rate of substitution. B) larger her average rate of substitution. C) smaller her marginal rate of substitution. D) larger her marginal rate of substitution.
Eurobank spreads exceed U.S. spreads
Indicate whether the statement is true or false
If a firm is practicing two-part pricing and it is charging a user fee that is ________ its marginal cost, it has customers with ________ demands.
A) less than; nonidentical B) greater than; nonidentical C) greater than; identical D) less than; identical