Esther and Albert produce hamburgers and hot dogs. Esther can produce six hamburgers per hour or four hot dogs per hour. Albert can produce three hamburgers per hour or one hot dog per hour. Based on the scenario, Esther's opportunity cost for one hamburger is:
a. 2/3 hot dog.
b. 1 hot dog
c. 6 hot dogs
d. 4 hot dogs
e. 8 hot dogs
a. 2/3 hot dog.
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Factors of production do not include
a. land b. labor c. money d. capital e. entrepreneurship
The figure above shows the U.S. production function. How would an increase in unemployment benefits be shown in the figure?
A) a movement from point C to point B B) a movement from point A to point B C) an upward shift or rotation of the production function D) a downward shift or rotation of the production function E) None of the above because the effects of an increase in unemployment benefits cannot be shown in the figure.
When Keynesians argue that "correlation does not necessarily imply causation," they are probably criticizing
A) structural-model evidence. B) reduced-form evidence. C) indirect-model evidence. D) black-box evidence.
Suppose that Figure 7.4 shows an industry's market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, a representative firm would charge a price of:
A. $35. B. $25. C. $20. D. $16.