Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country A could potentially make would be:
A. (500 iPods, 500 tablets).
B. (500 iPods, 200 tablets).
C. (500 iPods, 300 tablets).
D. (500 iPods, 400 tablets).
Answer: B
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What is the incentive for a firm to join a cartel?
A) to be able to earn profits in the long run but not in the short run B) to be able to earn larger profits than if it was not part of the cartel C) to completely insulate itself from competition D) to produce a larger amount of output than if it was not part of the cartel
Refer to the information provided in Table 19.8 below to answer the question(s) that follow.Table 19.8Total IncomeTotal Taxes$20,000 $2,000 40,000 4,800 60,000 9,000 80,000 16,000Related to the Economics in Practice on page 393: Refer to Table 19.8. The tax rate structure in this example is
A. marginal. B. proportional. C. regressive. D. progressive.
In the new Keynesian model, expected inflation is a function of ________
A) expected future output gaps and markup shocks B) current and past inflation C) unanticipated aggregate demand shocks D) expected growth of the money supply
About how much of the tax is paid by cigarette sellers?
A. 2 cents
B. 8 cents
C. 10 cents
D. 18 cents