At a given level of wheat output, one more unit of labor would produce 10 extra bushels, and one more unit of seed would produce 30 extra bushels. A unit of labor costs $6, and a unit of seed costs $12 . The farmer should
a. produce less wheat.
b. buy only seed.
c. buy more seed and less labor.
d. buy less seed and more labor.
c
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Compare and contrast the financial crises in Mexico in 1994 and in Asia in 1997
What will be an ideal response?
The purchase of 500 shares of Honda stock by the California State Employees' Pension fund
A) is counted as consumption expenditure. B) is not counted as part of GDP. C) is counted as investment in the GDP accounts. D) is counted as part of export expenditure in the GDP accounts because Honda is a foreign firm. E) is counted as part of import expenditure in the GDP accounts because Honda is a foreign firm.
Activities designed to convert resources into goods and services is known as
A) supply. B) consumption. C) production. D) scarcity.
The FOMC carries out its policies through directives to the bond-trading desk at the:
a. Federal Reserve Bank of Dallas. b. Chicago Fed. c. Federal Reserve of Philadelphia. d. Los Angeles Fed. e. Federal Reserve Bank of New York.