If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing milk shakes
Indicate whether the statement is true or false
TRUE
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In which zone will small shifts in AD, either to the right or the left, affect the output level, but will not much affect the price level?
a. Keynesian b. Neoclassical c. Intermediate d. Equilibrium
The indifference curves for right shoes and left shoes will be:
A. L-shaped. B. convex. C. a straight line with positive slope. D. a straight line with negative slope.
Lane and Riley are the only two residents in a neighborhood, and they share the same driveway. They would like to have the driveway paved. The value of the paved driveway is $1,500 to Lane and $900 to Riley. Regardless of who pays for the paving both people will benefit from it. If the cost of paving the driveway is $2,000 and Lane proposes that they each pay 50 percent of this cost, then Riley ________ agree to Lane's proposal because ________.
A. will not; if they split the cost, then Riley's economic surplus would decrease B. will not; repaving the driveway would lower total economic surplus C. will; repaving the driveway would increase total economic surplus D. will; if they split the cost, then Riley's economic surplus would increase
A production possibilities curve shows the:
a. dollar costs of producing two different goods. b. amounts of labor and capital needed to produce one good. c. various combinations of goods that can be produced. d. prices of different goods that are produced in an economy. e. inefficient use of available resources and technology.