Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206Suppose Smith and Jones begin by producing 100 calculators per hour; as Smith and Jones choose to efficiently produce fewer computers and more calculators, ________ should devote more time to calculators because his ________.
A. Smith; opportunity costs are lower
B. Jones; opportunity costs are lower
C. Smith; absolute advantage is larger
D. Jones; absolute advantage is smaller
Answer: B
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Which of the following forces did Keynes assert had the strongest influence on consumption decisions?
A. Wealth. B. Interest rates. C. Disposable income. D. Prices.
Products can be differentiated
A. if the buyers are homogeneous and their number increases. B. only by brand name. C. by location and by brand name. D. none of these.
Which type of offering typically has the lowest fees?
A) initial public offering of stocks B) secondary offering C) offering of investment-grade bonds D) offering of non-investment-grade bonds
Deadweight loss is
A) the amount of taxes that consumers and monopolists pay. B) the loss of output when a perfectly competitive firm becomes a monopolist. C) a loss of benefit to consumers in a monopoly that no one else in society can obtain. D) the price that consumers pay for a product in excess of the average cost of producing it.