Using the figure above, if Jack and Jill specialize and gain from trade, then
A) Jack specializes on the production of soda and water.
B) Jack specializes in the production of soda.
C) Jack produces equal amounts of gallons of water and bottled water.
D) Jack specializes in the production of bottled water.
E) Jack and Jill produce beyond their PPF.
D
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Which of the following is an implicit cost of going to college?
a. Tuition. b. Books. c. Lost income. d. Future income. e. Room and board.
A group of firms, operating in collusion, incur costs of production of $15 per unit. The price that currently maximizes their profit is $19 . Knowing that potential competitors could enter the market with production costs of $17 per unit, what price are the colluders likely to charge? Why?
Neoclassical economists believe that the government fosters economic growth by providing a stable economic environment with a low rate of ____________ and tax rates that are low and unchanging.
a. importing b. growth c. unemployment d. inflation
As the interest rate increases, what happens to the present value of a future payment? Explain why changes in the interest rate will lead to changes in the quantity of loanable funds demanded and investment spending