Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. What is the opportunity cost of repairing one car to Bob?
a. 10 toys
b. 8 toys
c. 16 toys
d. 12 toys
e. 4 toys
e
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A great deal of damage is done to the environment in the urban U.S. because
A) a system based on private property cannot provide for a common environment. B) few people understand the economics of pollution. C) many and perhaps most people assign little or no value to a pleasant environment. D) the environment is treated as everyone's property and therefore as no one's property. E) the United States has no central planning.
Tariffs ________ the domestic price of the good and import quotas ________ the domestic price of the good
A) lower; lower B) lower; raise C) raise; lower D) raise; raise
All of the following are cited as factors in explaining U.S. competitiveness EXCEPT
A) the open U.S. financial system. B) economic restructuring. C) investments in information technology. D) the decline of entrepreneurship.
Each member of a cartel
a. faces a temptation to cheat on the agreement because lowering its price slightly below the established price will usually increase the firm's sales and profit b. faces a temptation to cheat on the agreement because raising its price slightly above the established price will usually increase the firm's sales and profit c. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually have no impact on the firm's sales and profit d. has no temptation to cheat on the agreement because raising its price slightly above the established price will usually decrease the firm's sales and profit e. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually lower the firm's sales and profit