The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
If this country has an open economy, Silvia and Art can get ________ pounds of beef in exchange of a computer.
A. 25
B. 120
C. 80
D. 50
Answer: D
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To improve your own bargaining position
a. have low valued outside options b. increase the value of outside options c. do not alter the value of your outside options d. increase the value of your opponent's outside options
Total cost can be defined as:
A. the amount that a firm receives from the sale of goods and services. B. the amount that an individual spends on all normal goods and services within a specified period of time. C. the amount that a firm spends on all inputs that go into producing a good or service. D. None of these is correct.
Julio makes wine and beer. Last year he made 20 bottles of wine and 20 cases of beer. If the price of grapes goes down (making wine cheaper to make), Julio will be able to make the same amount of wine and more beer
a. True b. False Indicate whether the statement is true or false
Over time, which of the following will most likely result from a depreciation in the exchange rate of the dollar?
a. Inflation will decline. b. Foreign goods will cost Americans less, and therefore, the imports of Americans will rise. c. U.S. goods exported abroad will cost less in foreign countries, so foreigners will buy more of them. d. U.S. goods exported abroad will cost more in foreign countries, so foreigners will buy fewer of them.