If Terrell can produce more bagels in one day than Zori can produce in one day, then
a. Terrell has a comparative advantage in the production of bagels.
b. Zori has a comparative advantage in the production of bagels.
c. Terrell has an absolute advantage in the production of bagels.
d. Terrell should produce bagels and Zori should spend her time on a different activity.
C
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Refer to Figure 11-13. The lines shown in the diagram are isocost lines. Which of the following shows an increase in the firm's total cost while the price of labor and capital remain unchanged?
A) the movement from CE to AF B) the movement from BD to AF C) the movement from BD to CE D) the movement from CE to BF
Adverse selection is, in general, the asymmetric information problem that occurs
A) after a transaction is consummated. B) due to a size difference in the parties to a transaction. C) with securitization. D) before a transaction is consummated.
A monopolist has total cost TC = Q2 + 10Q + 100 and marginal cost MC = 2Q + 10 . It faces demand Q = 130- P (so its marginal revenue is MR = 130 - 2Q). Its profit-maximizing output
a. 30 b. 25 c. 20 d. 10
If the poverty threshold is set at 60 percent of median income, and if median income were $20,000 . then people in poverty earn less than
a. $32,000 b. $20,000 c. $12,000 d. $6,000 e. $24,00