In Japan, the market value of the land is approximately four times that of all the land in the United States, even though Japan is only about the size of California. The most likely explanation for this fact is
A. greater demand for land in Japan relative to the supply than in the United States.
B. land is very productive in Japan.
C. land is not fixed in supply in the United States.
D. Japanese workers are very productive.
Answer: A
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The distinction between exogenous and endogenous variables is important because:
a. Endogenous variables are real factors while exogenous variables are nominal factors. b. Endogenous variables are fixed by definition. c. Exogenous variables are fixed by definition. d. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Endogenous variables are therefore treated as shocks to the Three-Sector-Model. e. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Exogenous variables are therefore treated as shocks to the Three-Sector-Model.
The highest-valued alternative that is given up or sacrificed when choosing to produce or consume one good over another is referred to as _____________.
a. an economic choice b. an opportunity cost c. an accounting cost d. a fixed cost e. a variable cost
Productive efficiency refers to:
A. the use of the least-cost method of production. B. the production of the product mix most wanted by society. C. the full employment of all available resources. D. production at some point inside of the production possibilities curve.
Suppose that a new study is released stating that consumption of orange juice (a substitute for apple juice) reduces the risk of cancer, and a major freeze destroys half of the country's apple crop. What happens to the price and quantity of apple juice?
A. The price of apple juice might rise or fall and the quantity of apple juice falls. B. The price of apple juice might rise or fall and the quantity of apple juice rises. C. The price of apple juice falls and the quantity of apple juice falls. D. The quantity of apple juice might rise or fall, and the price of apple juice rises.