In an economy with production function Y = 1.5 × , K = 343, and L = 512. If factor markets are in equilibrium, then the rental price of capital is (approximately) ________, and the real wage is (approximately) ________
A) 0.5; 0.8
B) 7; 8
C) 0.9; 1.35
D) 1.4; 0.4
E) 0.6; 0.9
E
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When there are two people and each is capable of producing two goods, it is possible for one person to have a comparative advantage over the other in both goods
a. True b. False Indicate whether the statement is true or false
Use the following table to answer the question below. Cloe is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from the consumption of each product are as shown in the following tableNumber of ItemsMarginal Utility of ChocolatesMarginal Utility of Hard Candies160150250140340120430100520806107075508020Based on taste and preference alone, which good does Cloe prefer?
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Net exports are 2. U.S. exports and imports each affects domestic production because 3. Suppose foreigners spend $7 billion on American exports in a given year and Americans spend $5 billion on imports from abroad in the same year. What is the amount of U.S. net exports? 4. Net exports might be a negative amount if Americans
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