If helen can paint one room in the time it takes her to bake 40 cakes and josh can paint one room in the time it takes him to bake 60 cakes, josh's opportunity cost of baking one cake is
a. ?painting one room.
b. ?painting 1/40 of a room.
c. ?painting 1/60 of a room.
d. ?painting 2/3 of a room.
e. ?painting 3/2 of a room.
Ans: c. ?painting 1/60 of a room.
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Resources tend to be allocated inefficiently when goods
a. are private goods. b. are rival in consumption and excludable. c. are available free of charge. d. are available only at very high prices.
Suppose B(Q) = 5Q ? Q2 and C(Q) = 1 + Q2. Then, net benefits are ________ when Q equals ________ units since the second-order condition is ________.
A. maximized; 5/4; negative B. maximized; 4/5; positive C. minimized; 4/5; negative D. minimized; ?1; positive
Refer to Figure 8.11. Which of the following statements is true?
A. Both Fred and Barney have a dominant strategy. B. Neither Fred nor Barney has a dominant strategy. C. Fred has a dominant strategy but Barney does not. D. Barney has a dominant strategy but Fred does not.
Assume that constant returns to scale exists and that N and K both increase by 2%. Given this information, we know that
A) output (Y) will increase by 4%. B) Y will increase by 2%. C) Y will increase by less than 2%. D) Y will increase by less than 4% and more than 2%.