Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. Which of the following exchange rates between apples and oranges would allow both Alpha and Omega to gain by specialization and exchange?

a. 1 ton of oranges for 1/3 of a ton of oranges
b. 1 ton of apples for 3 1/3 tons of oranges
c. 1 ton of apples for 2 tons of oranges
d. 1 ton of oranges for 0.4 tons of apples


b

Exhibit 18-2

Economics

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In the probit model Pr(Y = 1|X1, X2,..., Xk) = ?(?0 + ?1X1 + ?2X2 + ... + ?kXk),

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Bert faces a progressive tax structure that has the following marginal tax rates: 0 percent on the first $10,000 . 10 percent on the next $10,000 . 15 percent on the next $10,000 . 25 percent on the next $10,000 . and 50 percent on all additional income. If Bert earns $75,000 . what is his average tax rate?

a. 20 percent b. 25 percent c. 30 percent d. 36.67 percent

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According to the Keynesian consumption function, an increase in disposable income will result in

A) a decrease in consumption. B) an increase in consumption. C) a decrease in investment. D) an increase in investment.

Economics