Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, the lowest opportunity cost for combs in terms of brushes is
A. 0.33 brush per comb.
B. 10 brushes per comb.
C. 2 brushes per comb.
D. 8.5 brushes per comb.
Answer: C
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A. the wage rate; utility B. total expenditures; the wage rate C. the wage rate; hours worked D. taxes; utility
Any change in people's willingness to participate in the labor force is represented as a movement along a labor supply curve
a. True b. False Indicate whether the statement is true or false
Consider the following payoff matrix facing two firms selling the same product in the same market. They must choose whether to price the good at a high or low price. COMPANY B Low PriceHigh PriceCOMPANY A Low PriceA: 2, B: 2A: 4, B: 1 High PriceA: 1, B: 3A: 6, B: 2Given this information:
A. A has a dominant strategy but B does not. B. B has a dominant strategy but A does not. C. both A and B have dominant strategies. D. neither A nor B has a dominant strategy.
The fact that monopoly and monopsony exist in resource markets means that:
A. the marginal productivity theory of income distribution is valid. B. resource prices do not always measure contributions to output. C. the resulting income distribution is ethically correct. D. income shares do not exhaust the total output.