Lane and Riley are the only two residents in a neighborhood, and they share the same driveway. They would like to have the driveway paved. The value of the paved driveway is $1,500 to Lane and $900 to Riley. Regardless of who pays for the paving both people will benefit from it. What is the most a contractor can charge to pave the driveway and still be assured of being hired by at least one of them?
A. $1,500
B. $600
C. $900
D. $2,400
Answer: A
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A government program that relies on high barriers to imported goods in order to stimulate domestic production of competing goods is an example of a(n) ________ policy
A) primary-export-led B) import-substitution development C) outward-looking development D) linkage-effect
Which of the following correctly describes convergence theory?
a. The rate of economic growth in less and more developed countries will be approximately the same. b. The productivity of skilled and unskilled workers will converge to the same value over time. c. Economies around the world will become more similar over time as less-developed countries grow faster than highly industrialized countries. d. The rate of economic growth in highly-developed countries will continue to outpace that of less-developed countries.
For farmers as a group, increased productivity can lead to lower incomes
Indicate whether the statement is true or false
If marginal cost of growing wheat, MC, just reaches $4 per bushel and if the expected price of wheat Pis $4, a farmer
A. should produce at that exact level at which MC= P and if AVC< MC. B. should check her/his average variable cost to see if P covers AVC. C. should stop producing if AVC> 4. D. All of the above.