The above figure shows the cost curves for a typical firm in a competitive market. If price = 8.5, then
A) the firm will produce 10 units.
B) the firm will produce 55 units.
C) the firm will earn positive profits.
D) None of above.
B
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Suppose firms in Hong Kong can produce 40,000 plastic dolls or 80,000 squirt guns each week, while firms in Taiwan can produce 40,000 plastic dolls or 40,000 squirt guns each week. Therefore
A) People in Hong Kong sacrifice two dolls for every squirt gun produced. B) People in Taiwan sacrifice two dolls for every squirt gun produced. C) People in Hong Kong sacrifice 2 squirt guns for every doll produced. D) none of the above are true.
Figure (a) represents the domestic demand and supply of televisions. Suppose free trade is allowed and the current world price of televisions is P1 as shown in Figure (b). Now suppose the domestic government imposes a tariff increasing the domestic price to P2 in Figure (b). This tariff will cause
a. imports to fall from Q2 minus Q1 to Q4 minus Q3.
b. domestic producers to increase their production from Q1 to Q3.
c. domestic consumers to reduce their consumption from Q2 to Q4.
d. All of the above.
When the Bank of England's Mervyn King spoke of "inflation nutters," he was referring to:
A) a delicious cookie. B) overly inflation-fearful ECB leaders. C) insufficiently inflation-fearful ECB leaders. D) overly inflation-fearful Bank of England leaders.
Refer to the information provided in Figure 20.1 below to answer the question(s) that follow.
Figure 20.1Refer to Figure 20.1. The opportunity cost of producing a bushel of alfalfa in Canada is
A. half as much as that in the United States. B. four times as much as that in the United States. C. the same as that in the United States. D. twice as much as that in the United States.