Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. Country B has an absolute advantage in the production of ProductivityCountry ACountry BGood X1.000.50Good Y0.200.70
A. only Good X.
B. neither Good X nor Good Y.
C. only Good Y.
D. both Good X and Good Y.
Answer: C
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A) is 0 units. B) is 4 units. C) is 8 units. D) cannot be determined.
If a monopolist's marginal revenue is $15 per unit and its marginal cost is $25, then to maximize profit the firm should decrease output
Indicate whether the statement is true or false
In economics, a public good
A. Cannot be denied to consumers who have not paid. B. Is provided in an optimal amount by the market. C. Is any good produced by the government. D. Has social costs of production lower than private costs of production.
If steak is a normal good, what do you suppose would happen to price and quantity during an economic recession?
A. Price would increase and quantity decrease. B. Price would decrease and quantity increase. C. Price and quantity would both increase. D. Price and quantity would both decrease.