Refer to the table below. Suppose the columns in this table reflect demand and supply. At a price of $30:Price PerUnitColumn A UnitsPer YearColumn B UnitsPer Year$2010040$309550$408060$506570$605080
A. there will be an excess supply of 45 units.
B. there will be an excess demand of 45 units.
C. the market will be in equilibrium.
D. there will be an excess demand of 95 units.
Answer: B
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The theory of comparative advantage suggests that a (an)
If the opportunity cost of producing wheat in Canada is four buffalo and the opportunity cost of producing wheat in the U.S. is seven sheep then we know that
a. four buffalo must trade for seven sheep b. seven buffalo must trade for three sheep c. we have insufficient information to determine anything about their trade d. the U.S. should specialize in wheat e. Canada should specialize in wheat
Which one of the following statements is false?
a. The economically optimal level of production is less than the open-access equilibrium level of production b. The economically optimal level of production occurs at the maximum sustainable yield c. Charging a license fee for access to a common resource will reduce the production level below the open-access equilibrium d. The "tragedy of the commons" is more likely to occur as production effort increases e. A license fee will reduce the incentives for entry into a market
In making a production decision, a business owner:
A.) Decides whether to enter or exit the market. B.) Makes a long-run decision about output and revenues. C.) Decides whether to buy or lease new plant and equipment. D.) Decides the short-run rate of output.