Refer to the data. If a new production technique is developed that enables a firm to produce 20 units of output with 3 units of land, 3 of labor, 1 of capital, and 2 of entrepreneurial ability, this technique would:
Answer the question using the following data, which show all available techniques for producing 20 units of a particular commodity:
A. not be adopted because, although it reduces production costs, it does not increase profit.
B. be adopted because it would lower production costs and increase economic profit.
C. not be adopted because it entails higher production costs than other available techniques.
D. be adopted, even though economic profits would be reduced slightly.
B. be adopted because it would lower production costs and increase economic profit.
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Suppose the price of coffee is $3 each, the price of bagels is $2 each and a person's budget is $40. The relative price of coffee is
A) 1.5 bagels. B) 2/3 of a bagel. C) 13.33 bagels. D) 20 bagels.
In the market for automobile insurance, adverse selection implies that
A) those who are insured might take greater risks. B) those who are uninsured might take greater risks. C) insured and uninsured alike will take greater risks. D) drivers with greater risks are more likely to buy insurance.
If net exports increase by $10 billion and the MPC = 0.6, the resulting increase in the consumption component of AD is: a. $25 billion. b. $15 billion. c. $6 billion
d. $4 billion.
To make rational forecasts, your predictions do not have to be correct all of the time
a. True b. False Indicate whether the statement is true or false