Country A and country B both increase their capital stock by one unit. Output in country A increases by 12 while output in country B increases by 15 . Other things the same, diminishing returns implies that country A is
a. richer than Country B. If Country A adds another unit of capital, output will increase by more than 12 units.
b. richer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units.
c. poorer than Country B. If Country A adds another unit of capital, output will increase by more than 12 units.
d. poorer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units.
b
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Suppose your expenses for this term are as follows:
tuition: $5,000, room and board: $3,000, books and other educational supplies: $500. Further, during the term, you can only work part-time and earn $4,000 instead of your full-time salary of $10,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? A) $5,500 B) $8,500 C) $11,500 D) $14,500
Which of the following is NOT a reason for the government to regulate a nonmonopolistic industry?
A) to allow firms to achieve the profit maximizing output B) asymmetric information C) to protect consumer interests D) market failures
A true public good is characterized by
A. depletability but not excludability. B. excludability but not depletability. C. both depletability and excludability. D. neither depletability nor excludability.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.