Look at the following production possibilities table for drill presses and corn. The table shows the maximum combination of drills and bushels of corn that can be produced when all resources are fully employed.
Drill Presses 10 20 30 40 50
Corn (bushels) 150 140 120 90 500
Based on the above information,
A) there is a constant trade—off between corn and drill presses.
B) the opportunity cost of producing 30 drill presses instead of 20 drills is 120 bushels of corn.
C) the opportunity cost of producing 40 drill presses instead of 30 drills is 30 bushels of corn.
D) the production possibilities curve for drill presses and corn will be a straight line.
C) the opportunity cost of producing 40 drill presses instead of 30 drills is 30 bushels of corn.
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In privately held firms the manager-stockholder conflict is
A) worse than in the larger firm. B) the same as it is in the larger firm. C) less severe than in the larger firm. D) there is no manager-stockholder conflict because the manager is the owner.
Businesses typically issue bonds to finance
A) their inventories. B) payments to their workers. C) spending on new plant and equipment. D) dividend payments to their stockholders.
If the US interest rate is 4% per year and the Mexico interest rate is 9% per year, which of the following is true:
a. The dollar will depreciate 5% in one year. b. The peso will appreciate 9% in one year. c. The peso will depreciate 5% in one year. d. The dollar will appreciate 9% in one year.
A successful cartel may end up charging the ____ price and obtaining ____ profits.
A. monopolistic competition; zero economic B. oligopoly; monopoly C. monopoly; zero economic D. monopoly; monopoly