Refer to the information. The per-unit cost of production in this economy is:
Answer the question on the basis of the following information. An economy is employing 2
units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640
units. Each unit of capital costs $10; each unit of raw materials, $4; and each unit of labor, $3.
A. $0.05.
B. $0.10.
C. $0.50.
D. $1.00.
B. $0.10.
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According the Lucas' misperception model, when prices unexpectedly rise, suppliers infer that their relative prices have _____, which induces them to _____ output
a. decreased; increase. b. increased; decrese. c. decreased; decrease. d. increased; increase.
Before a market allocation of goods on the production possibilities curve can be judged efficient, one must evaluate “what” goods the market produced.
Answer the following statement true (T) or false (F)
The circular flow diagram divides the economy into:
a. Household sector and business sector. b. Real sector and nominal sector. c. Domestic sector and foreign sector. d. Agricultural sector and non-agricultural sector. e. None of the above is correct.
Refer to the diagram above, which shows three supply curves for corn. A movement from point a to point b is caused by a change in the:
Price of corn in the market Number of corn farmers Price of resources used to produce corn Technology of corn farming