An apple orchard currently hires 10 workers. The owner estimates that hiring an additional worker would increase apple yields by 20 bushels per day. The price of apples is $15 per bushel. The owner should hire the extra worker if the wage rate is no greater than:
a. $50 per day.
b. $150 per day.
c. $200 per day.
d. $300 per day.
d
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Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must
A) take the inverse. B) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good. C) multiply by the total amount produced of the second good. D) divide by the total amount produced of the second good. E) None of the answers is correct.
Explain the differences between a corporate bond, a municipal bond, and a Treasury bond. Which of these would be the least risky investment, and why?
What will be an ideal response?
Q: How many economists does it take to screw in a light bulb? A: None. If the light bulb really needed changing, market forces would have already caused it to happen. This joke represents the view of
A) classical economists. B) Keynesian economists. C) economists who conclude that money illusion is widespread. D) economists who conclude that wages and prices are inflexible.
The trilemma refers to all the following EXCEPT:
a. a fixed exchange rate. b. international capital mobility. c. monetary policy autonomy. d. price controls.