A problem with measuring the factor shares to determine scarcity or abundance is that:
a. it is very hard to count workers in some nations.
b. estimates are very unreliable.
c. the quantity of a factor may not be as important as its productivity.
d. scientists disagree over the method by which to compute "share.
Ans: c. the quantity of a factor may not be as important as its productivity.
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Figure 5-6
In Figure 5-6, a shift in the budget line from AC to AB indicates
A. the price of wine coolers has risen. B. income has increased. C. the price of beer has fallen. D. the price of wine coolers has fallen. E. All of the responses are correct.
The principle of comparative advantage holds that nations should
a. specialize in activities for which they have the lowest opportunity cost. b. strive to become self-sufficient in production. c. produce only goods and services for which they have absolute advantage. d. become less labor-intensive and more capital-intensive.
These are the cost and revenue curves associated with a firm.
Assuming the firm in the graph shown is producing Q1 and charging P3, it is likely showing the cost and revenue curves of a monopolistically competitive firm that is:
A. earning zero economic profits. B. earning positive economic profits. C. It is impossible to tell from the graph provided. D. earning negative economic profits.
The intended use of TARP funds was to
A. support the FDIC. B. increase consumers’ disposable income. C. fund “shovel-ready” projects. D. purchase unwanted securities.