On a typical acre of land, Iowa can produce either 300 pounds of beef or 100 pounds of soybeans in a year. On a typical acre of land, Nebraska can produce 150 pounds of beef or 200 pounds of soybeans. Which of the following is correct?
A) Nebraska should produce soybeans because its opportunity cost of soybeans is lower.
B) Iowa should produce soybeans because its opportunity cost of soybeans is higher.
C) Iowa should produce soybeans because its opportunity cost of soybeans is lower.
D) Nebraska and Iowa should divide each acre evenly between soybean and beef production.
E) Nebraska should produce soybeans because its opportunity cost of soybeans is higher.
A
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Which of the following statements regarding the long-term equilibrium is TRUE?
A) As new firms enter a market, each existing firm increases the quantity it produces. B) Firms leave a market if they are making zero economic profit. C) Entry and exit stop when firms are making an economic profit. D) Entry and exit stop when firms make zero economic profit.
As wages for manufacturing workers rise, wages for service workers will stay the same
a. True b. False Indicate whether the statement is true or false
A student ranks 4 candy bars in the following order: 1) Twix, 2) Snickers, 3) Milky Way, and 4) Almond Joy. Given the choice of one candy bar the student picks a Twix bar. What is the opportunity cost of that choice?
A. The money that was spent on the candy bar B. Snickers C. Almond Joy D. Snickers, Milky Way, and Almond Joy
If the personal savings rate rose to 10%
A. our current account deficit would probably fall. B. our current account deficit would probably rise. C. our current account deficit would be unaffected.