OPEC periodically meets to agree to restrict the cartel's oil output, and yet almost every member of OPEC produces more than its own output quota. This suggests that OPEC has
A) a threat of substitute goods. B) a noncooperative equilibrium.
C) new potential entrants. D) a cooperative equilibrium.
B
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The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $20 and the price of a unit of capital is $8, then the economically efficient technique is
A) W. B) X. C) Y. D) Z.
The terms of trade (TOT) is defined as
A) (index of export prices)/(index of import prices). B) (home-country currency)/(foreign-country currency). C) . D) E) having a competitive advantage over other nations.
Which of the following statements best defines private costs?
A) They are internal in the sense that the firm or household must explicitly take them into account. B) They are costs borne by people other than those who commit the action. C) They are synonymous with social costs. D) They represent explicit costs incurred by business firms in the private sector.
If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to
a. appreciate the dollar and decrease the price of gold. b. depreciate the dollar and increase the price of gold. c. depreciate the dollar and decrease the price of gold. d. appreciate the dollar and increase the price of gold.