If a laborer in Mexico can produce 2 bushels of wheat or 4 bushels of corn in a day, the opportunity cost of producing wheat is 4 bushels of corn
a. True
b. False
Indicate whether the statement is true or false
False
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Capital goods are
A) a type of intermediate good. B) final goods, because they are not used up during a given year. C) produced in the same year as the related final good, whereas intermediate goods are produced in different years. D) produced in one year, whereas final goods are produced over a period of more than one year.
If the imposition of a binding minimum wage results in much higher unemployment among workers seeking minimum wage jobs,
a. firms will respond by demanding more labor. b. those workers who are employed will be worse off than before the minimum wage law. c. labor demand is relatively elastic. d. labor demand is relatively inelastic.
Consider Figure 6.4 in your textbook, as indicated below. If the equation for the demand curve were P = 10 - Q and MC constant at 4,
(a) Find the competitive level of output and price.
(b) Find the marginal revenue and derive the rent seeking cartel's of output and price.
(c) How much rent is being raised?
Which of the following statements is false?
A. Disinflation generally occurs during recessions. B. If the CPI rose from 100 to 500, the price level rose by 500 percent. C. If our economy is at full employment, the cyclical rate of unemployment would be zero percent. D. During business cycles, troughs are followed by recoveries.