Refer to the information. Which technique is economically most efficient in producing A?
Answer the question on the basis of the following information: Suppose 30 units of product A
can be produced by employing just labor and capital in the four ways shown below. Assume
the prices of labor and capital are $2 and $3 respectively.
A. I.
B. II.
C. III.
D. IV.
D. IV.
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When the LM curve is horizontal,
A) fiscal policy has no impact on equilibrium income. B) fiscal policy has no impact on the equilibrium interest rate. C) the economy is at full employment. D) monetary policy has no impact on equilibrium income.
In agriculture during much of the 20th century, supply grew more than demand. Which two farm problems are these?
A) the high-productivity problem and the income elasticity problem B) the low-productivity problem and the income inelasticity problem C) the high-productivity problem and the income inelasticity problem D) the low-productivity problem and the income elasticity problem E) none of the above
Often natural monopolies are regulated by:
a. setting the price equal to marginal cost, even if marginal cost is less than average total cost. b. setting the price equal to average total cost, so as to maximize consumer surplus and allow the firm to break even. c. having the firm produce the quantity at which marginal revenue equals marginal cost. d. having the firm produce the quantity at which marginal revenue equals average total cost.
Refer to the given data. Suppose that before specialization and trade Alpha chose production alternative C and Beta chose production alternative B. After specialization and trade, the gains will be:
A. 20 tons of fish.
B. 20 tons of chips.
C. 20 tons of fish and 20 tons of chips.
D. 240 tons of fish and 20 tons of chips.