Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A. The United States should specialize in the production of machinery.
B. The United States should specialize in the production of both goods because it has an absolute advantage in the production of both.
C. Mexico should specialize in the production of machinery.
D. Mexico should specialize in the production of tomatoes.
Answer: C
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Refer to the scenario above. Suppose you decide to buy a Toyota Corolla. You value the car for $10,000. You don't know it, but the car dealer values it for $8,500. What is the minimum price that the seller would accept for the car?
A) $8,500 B) $7,000 C) $10,000 D) $5,000
The use of an absorption instrument allows a government to
A) increase or decrease national absorption. B) change the balance between imports and exports. C) alter the balance of payments with a specific country. D) reduce the influence of domestic absorption on exchange rates.
The typical cost curves are U-shaped due to the
A. law of diminishing marginal utility. B. law of demand. C. law of supply. D. law of diminishing marginal product.
Expenses for room and board
a. are opportunity costs of attending college, because they are subsidized by the government or by the college b. are opportunity costs of attending college since they involve cash expenditures c. are opportunity costs of attending college if you are on scholarship, but not otherwise d. are not usually part of the opportunity cost of attending college, because you would have to live somewhere and eat something even if you didn't attend college e. are not usually part of the opportunity cost of attending college, because they are already included in room and board charges, and we wish to avoid double counting