Maximum Feasible Hourly Production Rates (in Tons) of EitherWine or Beef Using All Available ResourcesProductArgentinaFranceWine (gallons)3060Beef (pounds)1030Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of exchange
A. 0.25 gallons of wine for 1 pound of beef, and France imports beef.
B. 0.4 pounds of beef for 1 gallon of wine, and France imports wine.
C. 0.25 pounds of beef for 1 gallon of wine, and Argentina imports wine.
D. is 7 gallons of wine for 1 pound of beef, and Argentina imports beef.
Answer: B
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In the economy of Brightland, the commercial banks have deposits of $600 billion. Their reserves are $60 billion. All reserves are in deposits with the Central Bank and the commercial banks hold no excess reserves
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The marginal product of labor can be defined as: a. the change in profit divided by the change in labor, other factors of production held constant
b. the change in total output provided by a one unit increase in labor employed, other factors of production held constant. c. the total output divided by the total labor utilized. d. the change in labor utilized divided by the change in total output, other factors of production held constant.
The United States has a more unequal income distribution than many other developed countries such as Japan and Germany
a. True b. False Indicate whether the statement is true or false
If the firm has no fixed costs and variable costs of $2 per unit, what is the value of the firm's monopoly profits when it sets a price that maximizes its monopoly profits?
a. $7 b. $12 c. $15 d. $16