Fiona can iron 5 shirts or cook 2 meals in an hour. Alicia can iron 6 shirts or cook 1 meal in an hour. Which of the following statements is true?
a. Fiona's marginal cost of ironing a shirt is greater than Alicia's.
b. Alicia's marginal cost of ironing a shirt is greater than Fiona's.
c. Alicia's marginal cost of cooking a meal is twice that of Fiona's.
d. Fiona's marginal cost of cooking a meal is twice that of Alicia's.
A
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What do economists call the loss society experiences when there is market failure and the production of a good is less than the efficient amount?
A) tax B) subsidy C) price floor D) deadweight loss E) quantity restriction
When a minimum-wage law forces the wage to remain above the equilibrium level, the result is
a. both a shortage of labor and a shortage of jobs. b. a shortage of labor and a surplus of jobs. c. a surplus of labor and a shortage of jobs. d. both surplus of labor and a surplus of jobs.
Explain the impact on the Fed's balance sheet from a $10 million open market purchase of U.S. Treasury Securities. Be sure to identify which categories of assets and liabilities change and by what amounts.
What will be an ideal response?
Which is not a good method of providing public type goods by private means?
A. Clubs B. Free markets with competing entrepreneurs C. Funding by donation D. Private contracts