Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. Macroland's production possibility frontier is bowed out from the origin due to
A. decreasing opportunity costs.
B. specialized resources.
C. trade.
D. unemployment.
Answer: B
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Refer to the scenario above. What is the sum of the payoffs to the firms if both firms use Strategy A?
A) 1 B) -2 C) 2 D) 0
The Organization of Petroleum Exporting Countries (OPEC) is an example of
a. a price leadership system. b. a generally unsuccessful cartel. c. an organization devoted to tacit collusion. d. a successful cartel.
Suppose a firm has a production function given by Q = 2(2L)0.5K0.5. If the rental rate of capital is $100 per unit, the wage rate is $1,400 per week and the firm initially has 25 units of capital, what is the firm's short-run cost function?
A. C(Q) = 2,500 + 7Q2 B. C(L) = 2,500 + 1,400L C. C(Q) = 0.25 + 7Q2 D. C(L) = 0.25 + 1,400L
Answer the following questions true (T) or false (F)
1. The values of real GDP and real GNP are almost the same for the United States. 2. The values of real GDP and real GNP are almost the same in countries where a significant fraction of domestic production takes place in foreign-owned firms. 3. Disposable personal income is equal to personal income minus personal tax payments.