An allocation satisfies the output efficiency condition if:
A. for every pair of goods, every input's marginal product equals the marginal rate of transformation.
B. for every pair of goods, every consumer's marginal rate of substitution equals the marginal rate of transformation.
C. only applies for firms that produce the same product.
D. only applies for consumers that consume the same goods.
B. for every pair of goods, every consumer's marginal rate of substitution equals the marginal rate of transformation.
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Use the following table to answer the question below.Giovanni's Production Possibilities ScheduleJorge's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160032040120202408080401601204060801600800Who has the comparative advantage in the production of corn?
A. Jorge B. Giovanni C. Both D. Neither
Special drawing rights (SDRs) are
A) a reserve asset created by the International Monetary Fund that countries can use to settle international payment obligations. B) a liability payment from a branch bank to a nation's central bank. C) a country's surpluses in their fiscal budgets. D) exchanges of gold between nations.
in the 1990s Ireland made unemployment benefits less generous. This change would likely have
a. reduced structural unemployment and the natural rate of unemployment b. reduced structural unemployment but not the natural rate of unemployment c. reduced frictional unemployment and the natural rate of unemployment d. reduced frictional unemployment but not the natural rate of unemployment
If a perfectly competitive industry suddenly became a monopolist, equilibrium output would _________, and the equilibrium price would _________.
a. increase; increase b. decrease; decrease c. increase; decrease d. decrease; increase