Use the information provided in Table 7.4 below to answer the question(s) that follow.
Table 7.4Inputs Required to Produce a Product Using Alternative TechnologiesTechnologyUnits of CapitalNumber of EmployeesA 836B 1224C 1616D 24 12Refer to Table 7.4. If the hourly price of capital is $20 and the hourly wage rate is $14, which production technology should be selected?
A. A
B. B
C. C
D. D
Answer: C
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Refer to the scenario above. The nominal GDP of the country in Year 1 was ________
A) $280,000 B) $2,200,000 C) $1,400,000 D) $540,000
When a society achieves allocative efficiency, it
A) is not achieving production efficiency. B) is producing that combination of goods and services that society values most highly. C) might or it might not be producing at a point on society's PPF. D) is producing a combination of goods and services whose marginal cost exceeds their marginal benefit. E) is producing the combination of goods and services for which marginal benefit exceeds marginal cost by as much as possible.
If weak aggregate demand is pushing the economy into recession, which of the following must be true?
A) The economy is at an equilibrium that is on the long-run Phillips curve. B) The economy is at an equilibrium that is not on the long-run Phillips curve. C) Contractionary monetary policies will push the economy back to the long-run Phillips curve. D) The economy is at an equilibrium that is on the long-run aggregate supply curve.
Refer to the figure above. In autarky equilibrium, the relative price is given by the slope of the production possibility frontier at point
A) D. B) E. C) F. D) Can't answer without more information.