As an economy moves down along a straight line production possibilities frontier, what happens to the opportunity cost of producing the good on the horizontal axis?
A) It remains constant.
B) It decreases.
C) It increases.
D) Above the midpoint it decreases until it equals 1 at the midpoint and then it increases.
E) None of these depicts what happens to opportunity cost.
A
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The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. An increase in the wage rate for labor leads to
A) an increase in the quantity of labor demanded. B) a decrease in the quantity of labor demanded. C) an increase in the demand for labor. D) a decrease in the demand for labor.
Bank A and Bank B both have required reserve ratios of 10 percent. Bank A receives a new deposit of $300,000 and uses the resulting excess reserves to make a loan to Oshra, who uses it to buy a new house from Seanan. Seanan deposits the money he received from Oshra into Bank B, which then uses all its new excess reserves to make a loan to Terrance. How much money was loaned to Terrance?
a. $30,000 b. $28,300 c. $270,000 d. $243,000
Refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. If the initial demand and supply curves are D0 and S0, equilibrium price and quantity will be:
A. 0E and 0B respectively. B. 0F and 0A respectively. C. 0F and 0C respectively. D. 0G and 0B respectively.
The sport where free agency first dominated was
A. soccer. B. baseball. C. football. D. hockey.