Markets sometimes fail to allocate resources efficiently
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following are examples of a firm experiencing a positive technological change?
a. A firm is able to reduce its inputs by 15 percent and still produce the same level of output. b. A seminar attended by the firm's workers makes them more productive. c. A firm adds 5 percent to its workforce and is able to maintain its initial level of output. d. A firm restructures its distribution system and is able to save on its shipping times. e. A firm rearranges its warehouse and finds that it can use fewer workers to maintain its productivity level.
Refer to Figure 9.8. In order to eliminate international trade in sugar altogether, this country would have to impose a quota of
A) 0 tons. B) 200 tons. C) 300 tons. D) 350 tons. E) 500 tons.
To be valid, an economic model must
a. include every activity that occurs in the real world b. include every economic activity that occurs in the real world c. be useful in explaining cause-and-effect relationships in the real world d. exclude any link to the real world e. not be based on an abstraction of the real world
Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mortgage payment; $250 cost of electricity to run the printing presses; $800 for ink and paper; and $200 in city property taxes (based on the value of the building and land). Its total variable costs are:
A. $8,950. B. $8,750. C. $6,550. D. $6,300.