Which of the following terms of trade would enable the two countries illustrated in Figure 35.1 to trade with each other and increase consumption possibilities?
A. 3 DVD players per motorcycle.
B. 1/3 of a DVD player per motorcycle.
C. 3/4 of a DVD player per motorcycle.
D. 4 DVD players per motorcycle.
Answer: C
You might also like to view...
The difference between GDP and net taxes is
A) actual investment spending. B) personal income. C) unplanned investment spending. D) disposable income.
A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5 . The firm can sell the 100th unit for $5 . The firm should continue to produce 100 units in order to maximize its profits (or minimize its losses)
a. True b. False Indicate whether the statement is true or false
If the last $5 spent on movies added 30 utils to your total satisfaction and the last $8 spent on books add 56 utils
A. you can increase your satisfaction by buying more books and seeing fewer movies. B. you can increase your satisfaction by buying only books. C. your total satisfaction is 86 utils. D. you can increase your satisfaction by buying fewer books and seeing more movies.
A monopolist is producing at an output level at which ATC = $5, P = $6, MC = $4, and MR = $3. We can conclude that
A) economic profit could be increased by producing more. B) economic profit could be increased by producing less. C) economic profit cannot be increased. D) the firm is earning $10 in economic profits.