Refer to the information given in Table 16.6 below to answer the question that follows.
Table 16.6
Refer to Table 16.6. Assume that the marginal cost of hiring a police officer is $100. If A and B are the only two people in the society, the optimal number of police officers is
A. 1.
B. 2.
C. 3.
D. indeterminate from this information.
Answer: B
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If the world terms of trade equal those of country F, then
A) country H but not country F will gain from trade. B) country H and country F will both gain from trade. C) neither country H nor F will gain from trade. D) only the country whose government subsidizes its exports will gain. E) country F but not country H will gain from trade.
If a good is labor intensive it means that the good is produced
A) using relatively more labor than goods that are not labor intensive. B) using labor as the only input. C) using more labor per unit of output than goods that are not labor intensive. D) using labor such that the total cost of labor is greater than the total cost of capital. E) using labor such that the cost of labor is more than 50% of total cost.
Which of the following correctly describes actions of the U.S. government during the recession of 2008-2009?
a. It refused to provide banks funding and made no significant changes in government spending. b. It refused to provide banks funding but made a large increase in government spending. c. It became part owner of some banks but made no significant change in government spending d. It became part owner of some banks and made a large increase in government spending.
Refer to the above diagram. A decrease in supply is depicted by a:
A. shift from S1 to S2. B. move from point y to point x. C. shift from S2 to S1. D. move from point x to point y.