In one week, Mohammed can knit 5 sweaters or bake 240 cookies. In one week, Tetah can knit 15 sweaters or bake 480 cookies. Mohammed and Tetah would produce the maximum quantities of cookies and sweaters if
a. Mohammed knitted and baked and Tetah did nothing
b. Tetah knitted and baked and Mohammed did nothing
c. Mohammed knitted and Tetah baked
d. Tetah knitted and Mohammed baked
e. Mohammed knitted and baked and Tetah just knitted
D
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
An advantage emission taxes and permits have over direct controls is that the former
A. works well even if pollution output cannot be accurately measured. B. can respond quickly to new information about the dangers of particular pollutants. C. makes it in firms’ interests to reduce pollution in the most efficient manner possible. D. reduces pollution to zero.
Economists use the term externalities to refer to
A) consequences people ignore in their decision making. B) any cost associated with an action. C) foreign imports or exports. D) the behavior in which people actually engage as distinct from their alleged reasons for acting as they do. E) the outside directors of a corporation as distinct from corporate directors who are also managers.
Refer to the budget line in the figure. If the price of a loaf of bread is 50 cents, what is the consumer's annual income?
a. $20 b. $60 c. $80 d. $40