Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 Suppose Earth Movers & Shakers needs to fill an order for 60 tons of ore in a single day. If it has no other orders for that day, it should:
A. take it all from Mother Lode.
B. take it all from Middle Drift.
C. take 20 tons from each of the three mines.
D. take 30 tons from Scraping Bottom and 30 tons from Middle Drift.
Answer: B
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A) those assets that are used as a unit of account. B) those assets that are used as a store of value. C) those assets that are used as a medium of exchange. D) those assets that are used as a standard of deferred payment.
If the per-worker production function shifts up,
A) negative technological change has occurred in the economy. B) it now takes more capital per hour worked to get the same amount of real GDP per hour worked. C) an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. D) the per-worker production function becomes flatter.
Suppose the economy is producing at the natural rate of output. An open market purchase of bonds by the Fed will cause ________ in real GDP the the short run and ________ in inflation in the short run, everything else held constant
A) an increase; an increase B) a decrease; a decrease C) no change; an increase D) no change; a decrease
Which of the following is not an example of crowding out?
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