In the table below, the capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit. 
How much does the 50th unit of output add to the firm's total cost?
A. $400
B. $600
C. $10
D. $6.67
E. none of the above
Answer: D
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Generally with bond ratings, the higher the rating, the ________ the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default
A) higher; higher B) lower; lower C) higher; lower D) lower; higher
The O-ring theory places emphasis on
a. education of the labor force. b. skill complementarities. c. purchases of machinery and equipment by firms. d. none of the above.
Itchy Scratchy Bombs 10 8 Missiles 6 4 The table above shows how many bombs or missiles Itchy and Scratchy can produce in one year. (For example, Itchy could produce 10 bombs or 6 missiles in a year.) Which of the following is an accurate statement about comparative advantage?
a. Itchy has the comparative advantage in both goods. b. Scratchy has the comparative advantage in both goods. c. No one has the comparative advantage in missiles. d. Itchy has the comparative advantage in bombs, while Scratchy has the comparative advantage in missiles. Incorrect, Please review Top Ten Concept # 2. e. Itchy has the comparative advantage in missiles, while Scratchy has the comparative advantage in bombs.
If the sacrifice ratio is 4, then reducing the inflation rate from 9 percent to 5 percent would require sacrificing
a. 4 percent of annual output. b. 8 percent of annual output. c. 12 percent of annual output. d. 16 percent of annual output.